Possible BRRRR property?

Question

Hello,

I've bought a class D property in Oklahoma via a tax lien auction for $6,000. This is my first property in my portfolio and want to use the BRRRR strategy to start acquiring more properties. The biggest problem I am running into right now is finding out what the ARV of this property will be. I've used online sources such as Zillow and Redfin to find a possible source of the ARV but think the numbers are too high at $77,000.

Also, could someone provide an old thread/book recommendation of the functions and benefits using a LLC during BRRRR or long term buy and hold deals.

Jaron Walling · Answer

@Percy Miller Congrats on the first deal. Bold strategy to buy it at an auction in class D neighborhood! I would get a good education quickly (forums, books, meet-ups, etc.) so this property doesn't become a problem for you.

Oklahoma utilizes a tax deed resale system so you own it outright. If it's your first rental you don't need an LLC. In fact starting one will hinder your ability to secure a cheaper refinance if you're doing a true BRRRR. Stick with a conventional loan, provide the lender documents, and learn from the experience. It's exhausting but everyone does it. Once you have signed leases, steady rental income, and **fingers crossed** good tenants you could quit claim deed properties into an LLC. That was our plan of attack when we started out.

Network with a RE agent and get a CMA. This is best way to find the ARV. In my experience Zillow is usually a bit lower on price. Again every market is unique but having a target (ARV) is massively important if you're doing a BRRRR. It's life and death profit wise if you flip.

Buying a property for $6k in 2026 says a lot. Safe to assume this property needs everything touched and/or the location is difficult. Keep that in mind when you establish the rehab budget. Do not over renovate if the neighborhood doesn't support it. You won't get it back on the refinance and you'll trap more cash in the deal. Cheers.

Vijay Friedman · Answer

@Percy MillerCongrats on your first acquisition. I'd be cautious about relying on Zillow or Redfin alone for ARV, especially on a Class D property. Looking at recently renovated comparable sales in the immediate area—and if possible getting input from a local agent or appraiser familiar with investor rehabs—will usually give you a much more reliable number before you finalize your BRRRR plan.