Where are you BRRRRing?

Question

Hi Everyone!

New to BP and REI! I’m reading David Greene’s books and looking to start BRRRRing OOS! Where are you BRRRRing?!

*also, would love to connect with other women who BRRRR OOS!

Steven Foster Wilson · Answer

Columbus OH! My first BRRRR was a $300k duplex, put in $50k and gave me $90k cash back and cash flows $1800/month.

My second BRRRR was $160k triplex, put in $55k, gave me $170k back and cash flows $2000/ month.

I am now working on my third BRRRR in the area! Gotta love Columbus!

Brandon Sturgill · Answer

@MJ Kim there is still opportunity in the Columbus market...we have enormous transition across entire zip codes...if you are willing to assume some level of risk, can connect with a great team, and undertake a renovation and stabilization effort, you can do well. I have not seen many folks actually pull off a BRRRR with straight conventional financing, but maybe its possible...the renovation style loans work...or cash is always your best play. I would say pay close attention to the volume of comps wherever you end up...some of these transitional locations have many more $125k properties than $350k properties...combine this with lack of experienced appraisers and you have a potential recipe for disaster.

Patrick Drury · Answer

@MJ Kim

Nice. Those are great reads for OOS investing. If you're looking for markets to do BRRRR's from OOS, I would recommend Columbus OH. Columbus has great population growth and job opportunities. The price points also make sense when investing, allowing you to find deals that meet the 1% rule. Columbus has good cash flow and great appreciation.

Derek Torculas · Answer

@Bonnie Low im here in Shasta County we should connect. I find properties all the time in that criteria

Steven Foster Wilson · Answer

Columbus! My first BRRRRR was $300k, put $50k into it, refinanced and got $90k back. Now im working on refining it agin to get another $50k and it cash flows $1800/month.

Second BRRRRR cost $160k, put $55k into it, refinanced and gave me just under $200k back and cash flows $2000/month.

Currently working on my 3rd BRRRR in the city!

Remington Lyman · Answer

I started purchasing small multifamily in Columbus, Ohio a little over 3 years ago and have done extremely well. The cost of entry is low while the cash flow is high. Columbus is the only Ohio market that has seen rapid growth in jobs and population.

Dan H. · Answer

We BRRRR in San Diego county with outstanding success.  Only one of our properties has any of our initial investment still in it (it was purchased NYE and is not a BRRRR).

Our next project is in Bonita.  Rehab is likely 6 figures (open the layout, rehab pool, rehab kitchen, rehab bathrooms (3) converting one bathroom from 0.5 to 0.75), new and relocated HVAC, Digital locks, patio with deck accessible from Master BR, convert office to BR, convert large BR into 2 BR).  We will STR this property with use of PM.  We expect STR rent between $12k to $15k per month.

The finished product will be an open layout, 5 BR, 2.75 bathroom home with beautiful, rehabbed pool, and with a deck with a view. Ideally we trap $0 of our investment on a ~$1m ARV (ideally we get some cash out on the refi) and conservatively STR rent for >$12k/month achieving an infinite return.

On the rentals, I mostly deal with the contractors but on the rehabs my wife mostly deals with the contractors, but that may change as I expect to retire from my W2 next month.  She is not on BP, but she is on some other landlord related sites.  She has done quite a few rehabs, but this will be our largest to date.

Bonnie Low · Answer

@MJ Kim we BRRRR in far northern CA, believe it or not. Shasta County specifically. Our niche is severely distressed properties that also have ADU potential. We buy very low, do a massive remodel, convert an existing structure (like a shop or detached garage) to an ADU then do a cash out refi. The rent on the main house covers the mortgage payment plus $100-$200/mo cash flow but the real cash flow is in the ADU.

Bonnie Low · Answer

@Derek Torculas we're already connected, LOL. You talk to my husband, Chris Low, all the time ; )

Katie Miller · Answer

Let me know how you like his books, MJ! I've found David Greene's in-depth analysis to be all the information you need to start your first BRRRR project!

Where are you BRRRRing?

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