Brrrr + Buy and Hold hybrid method
Hello all, hope you and your family stay safe thru this increasing case of covid.
I've been looking a brrrr deal under $100k including purchase price, rehab, closing all cash.
I have already contacted few agents who are highly active but unfortunately there are no deals as I have learned from the books to follow the classic brrrr strategy by making an offer 20% under the market value, and rehab, and 70% rule.
One of the most impressing quotes from Long Distance REI from David Greene was, "You make money when you buy a property" and I agree with that 100%.
However, the reality is far from the book. Unless the property is heavily distressed and requiring a significant job to rehab, there are no deals you can make an offer 20% under the market value.
Don't get me wrong, there are still opportunities out there since I'm looking into out of state investment but those properties that meet my criteria often are in class F neighborhood with high crime rate or vacancy rate higher than 15%.
So, instead of all cash-in, I was thinking to put 25% down and paying cash for rehab but no banks are lending loan to distressed properties. I was wondering if you could share your experience when you started investing OOS like me. Would banks lend the money for the rental property that would only need interior rehab? What factors should I put numbers if I would get cash refi after 6 months?
Thank you for your inputs!