I recently closed on my first house hack in Lowell, Ma (2 family) and now I am looking to BRRRR my next property. Anyone have any suggestions on how to move forward if I have limited funds (money) to start?
MA could be a bit pricey but I am open to using the BRRRR anywhere in the U.S.
Yes definitely. I think if you have limited funds the BRRRR method would definitely be a good strategy. I would recommend that you find a private lender with good rates. Remember to negotiate the house down. Check out the Memphis market. It's a good place for cashflow. I can send you a zip code guide that we send to investors. It's a good way to get to know the areas. PM me your email.
@Johnny Truong congrats on househacking Lowell! We have an office in Lowell and I own 12 units there. It's a great market to get started in. BRRRRs are definitely a great strategy and a lot of people are looking to do the same. I'd recommend focus close to home (30 mins from lowell) build your network and find some hard money lenders or private lenders to connect with. Once you find a deal act quickly. You may need to flip a house or 2 before you find one with enough equity to refinance and keep with with very little funds stuck in it. While doing a flip and making some $ isn't the target it's the same process as a BRRRR it's just with a BRRRR you need 30% margin when it's completed. If you sit back and wait for a home run to drop in your lap in MA or NH you're going to be waiting a very long time. If you tackle 1-2 projects with 15-20% margins you'll build your team, your network, and your skills while actively hunting for that perfect BRRRR.
Just my 2 cents.
We were hosting meetups weekly in MA and NH so people can network and grow their teams locally but since Covid we are online. Our next monthly meetup is actually tomorrow, PM if you’re interested in attending. It is posted under the Events tab on BP under Pints & Properties New England but that portion of the site is difficult to filter for online meetups.
@Jonathan Bombaci thanks for the info! Do you have an HML you can refer to me?
For hard money lenders, you can start by using the "Network" tab on BiggerPockets; they have a list of reputable hard money lenders and you can search by state.
Hope this helps,