Killer deals vs decent deals

[John T.]

For buy-and-holders out there -- you've likely decided to focus either on:

• finding awesome deals, rehabbing and renting
   -- vs --
• finding properties that are pretty much move-in ready or (my favorite) already occupied with good tenants.

How did you make this decision?  What factors played a role for you?  Especially if you're a remote investor.

Numbers-wise, I know I can get better returns with BRR (buy/rehab/rent).  But in terms of peace of mind as a busy out of state person, I lean more toward the move-in ready investments.  I want some arguments to help me either feel better about my choice, or seriously reconsider my strategy.

[Justin Owens]

@John T. Debated this myself for months. Ultimately I settled on searching for local BRRR deals over out of state turnkey deals with the fantastic numbers they promise.

The main reason was that I want to grow somewhat quickly. Buying out of state turnkey I would need to come up with $20-50k down payments each time I want to purchase a property. Saving that much would take me a good while. By staying local and using the BRRR strategy, I will be able to move quicker in acquiring units. My goals drove my strategy.

Also, part of the consideration is that in AZ I am a licensed real estate agent with a background in construction. If I went turnkey and out of state I would not be able to put my experience to work to earn me money and pay someone else to do that. Deals don't fall from the sky in AZ but they can be found where the numbers make sense.