BRRR long term buy and old for STR or long term rentals

St. Petersburg, Florida
Out of State Investing
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BRRR long term buy and old for STR or long term rentals

Colin Ford
Member since 2024 · 4 posts · 1 vote

Happy Saturday BiggerPockets nation, 

My fiancé and I have been vacationing in ST. Petersburg now for a few years. We absolutely love it and are very interested in buying a multifamily investment property in the area specifically a duplex. MY goal is to do the BRRR strategy to finance and buy the property. Unfortunately we live out of state in RI. We are reaching out to this amazing platform for some help and direction to get things rolling. We are very new to this world so we need great guidance. Currently are closing on our first duplex In RI with the VA loan.

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  • Ben TrageserPro Member
    Accountant · Montclair, NJ · Member since 2020 · 218 posts · 104 votes
    1y

    Utilizing the VA loan is a good first step in terms of investing. There are tons of resources on here for the FL area and I'm sure you'll be able to build out your team. Just note with the hurricanes, things are a little crazy down there. It potentially could be a good time to buy as people are looking to get out.

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  • Raymond J. RodriguesBusiness Member
    Lender · Miami, FL · Member since 2017 · 1k+ posts · 797 votes
    1y

    Hi @Colin Ford, welcome to the forums and to St Pete! It's my favorite city in Florida! The BRRR is a great strategy, but you will have to search hard to find a distressed duplex that you're able to force appreciation on in this neck of the woods. Multi family isn't as common as you'd find in other parts of the United States, but there are some good properties here to be had! I recommend connecting with @Josh Green and his wife who are also investors/investor focused agents that can help you strategize a plan! 

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  • Colin Ford
    OP
    Member since 2024 · 4 posts · 1 vote
    1y
    Quote from @Raymond J. Rodrigues:

    Hi @Colin Ford, welcome to the forums and to St Pete! It's my favorite city in Florida! The BRRR is a great strategy, but you will have to search hard to find a distressed duplex that you're able to force appreciation on in this neck of the woods. Multi family isn't as common as you'd find in other parts of the United States, but there are some good properties here to be had! I recommend connecting with @Josh Green and his wife who are also investors/investor focused agents that can help you strategize a plan! 

    Thanks for the advice and the welcoming! I’ve notice on Redfin right now there are a few 2 families that have been on the market for more than 60-100+ days. Some need work as well. I will definitely reach out to Josh. I want to get some info on those properties maybe a good BRRR. 

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  • Josh GreenBusiness Member
    Realtor · Tampa/St Pete/Clearwater/Bradenton · Member since 2020 · 396 posts · 353 votes
    1y
    Quote from @Colin Ford:

    Happy Saturday BiggerPockets nation, 

    My fiancé and I have been vacationing in ST. Petersburg now for a few years. We absolutely love it and are very interested in buying a multifamily investment property in the area specifically a duplex. MY goal is to do the BRRR strategy to finance and buy the property. Unfortunately we live out of state in RI. We are reaching out to this amazing platform for some help and direction to get things rolling. We are very new to this world so we need great guidance. Currently are closing on our first duplex In RI with the VA loan.

    Biggest thing is cash position.  A successful STR needs a good bit of cash upfront and if you’re doing a BRRRR then even more now for rehab.  100% financing everything and the rehab is not advisable unless you’re a very skilled and hands on STR investor.  Though, if you have the cash to do it, it is very lucrative. I have a few BRRRSTRs going on and the returns are immense!  It’s super important you prioritize the end product: something that gets the job done well as an STR.  There is unlikely ever going to be a “home run” value add + “home run back end STR”. It is much better to hit a single or double with the rehab and a triple or home run on the STR.

    im Josh and I buy more STRs in the Tampa/StPete/Clearwater/Largo/Seminole area than any other agent the past 2 years.  We have the full gambit from 1) finding and buying the right property in the right locations to 2) professional execution of the design to 3) discounted property management services.  All 3 parts are critical to being successful here and we’ve been doing it with todays prices, todays competition and todays interest rates.  We’re really best suited for those high income earners out there with strong investment experience and cash positions to literally take the reigns and create a strong cash flow product and tax write off for them with minimal time spent on their part. The DIYers are welcome, but these kind of deals take a solid 150-200 hrs for the average first timer from start to finish and a minimum cash position of $175k (if you DIY the design/furnishing; more if you want to be hands off).  If you’re looking for that expert comprehensive service here don’t hesitate to reach out and we’ll see if it’d be a good fit! 👍 
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  • Alecia LovelessPro Member
    Member since 2019 · 3k+ posts · 2k+ votes
    1y

    @Colin Ford Spend a good amount of time building your team in Florida. This will be very important if you are attempting a long distance BRRRR.

    I have been working with my contractor about 23 years now and when we get involved in a project I go to the site at least 4-5 times per week.

    I would have a hard time trusting a new contractor to do a big project remotely. I know some people do this but proceed with caution.

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  • Nicholas L.Pro Member
    Flipper/Rehabber · Pittsburgh · Member since 2018 · 6k+ posts · 5k+ votes
    1y

    @Colin Ford

    congrats on your purchase in RI. the key to a BRRRR, whether it's going to be an STR or LTR, is this:

    distress.

    you need to find a significantly distressed property, such that you can increase the ARV via the rehab. this is very, very difficult to do at a distance.  if you're in St Pete frequently you'll need to turn some of those vacation trips into work trips - networking, building a team, and trying to find a distressed property.

    but the trick is then going to be moving quickly if either 1) a distressed property hits the MLS (unusual, but not unheard of) or 2) a distressed property comes to you another way (from your network, from a wholesaler.)

    how you will move quickly enough to lock it down and buy it, if you're in RI? those properties sitting on the MLS property won't work... because if they would, someone else would have bought them already.  they're sitting, either because 1. they're not distressed enough, or 2. the seller won't budge off of their unrealistic price, or 3. something else is very, very off.

    hope this helps - happy to help further

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  • Drew SygitBusiness Member
    Property Manager · Royal Oak, MI · Member since 2012 · 12k+ posts · 9k+ votes
    1y

    @Colin Ford recommend getting experience with your RI duplex before going OOS.

    You should DIY manage the unit next door, so you LEARN about property management, the goog, the bad and the ugly.

    Then you'll be so much better prepared to invest OOS!

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  • Amber Stout
    Lender · Tampa/Saint Petersburg, FL · Member since 2014 · 356 posts · 148 votes
    1y

    Hi Colin, I live and invest in St. Pete and it's an absolute gem! Based on the development expected over the next decade, I believe it's a great area to invest in. Would you be looking to owner occupy the property or strictly as an investment? Being out of state, I would suggest vetting your "team", meaning find an investor realtor, lender/s (hard $ / long term), property manager, contractors, etc. I have a GREAT rolodex of folks if you need connections. 

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  • Wale LawalBusiness Member
    Real Estate Broker · Houston | Dallas | Austin, TX · Member since 2018 · 5k+ posts · 2k+ votes
    1y

    @Colin Ford

    To invest in St. Petersburg, build a team with real estate agents, property managers, contractors, lenders, and title company/closing attorneys. Research the area's nuances, understand BRRRR financing strategy, network with local investors, analyze potential deals, use VA loans wisely, explore financing options, and network through investor groups. Prepare for property management using software, local handyman, and vendors. Stay educated on Florida market trends and BRRRR success stories.

    Good luck!

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  • Jorge VazquezBusiness Member
    Real Estate Broker · Tampa, FL · Member since 2017 · 1k+ posts · 692 votes
    1y

    Hi Colin,

    Great to see you diving into real estate! With 20 years of experience managing 30+ long-term rentals, a few STRs, and running a property management company in Central Florida, I've learned both have their place in a portfolio if you diversify based on your risk tolerance and the timing for your goals. STRs can bring great returns but are higher risk and more hands-on, like small-cap stocks, while long-term rentals are stable and predictable, like large-cap investments. For your out-of-state BRRRR plan, building a strong local team in St. Pete is crucial to manage renovations and property management remotely. Focus on properties where you can force appreciation—those sitting on MLS too long might not be the right fit. If you need any connections to contractors, agents, or property managers, let me know—I'd be happy to help. Play it smart by aligning your investments with your goals, timing, and risk appetite. Good luck!

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  • Colin Ford
    OP
    Member since 2024 · 4 posts · 1 vote
    1y

    I want to first say thanks to everyone who responded with great advice and mentorship. It’s very welcoming and helpful. I will do my due diligence and extensive research before making any moves. Thanks again for everyone who responded. Looking forward to growing my portfolio and connecting with the BiggerPockets community through out my journey!!

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  • Jonathan Soto
    Lender · Newark, NJ · Member since 2016 · 695 posts · 252 votes
    1y

    welcome!!!! best of luck on your journey

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