Anyone have Experience doing a BRRRR out of state

Out of State Investing
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Anyone have Experience doing a BRRRR out of state

Dylan Backer
Member since 2026 · 3 posts · 6 votes


Hi everyone! This is my first time posting here.

I'm 20 years old and based in Southern California. Earlier this year, I purchased my first rental property a turnkey Section 8 rental in Memphis, TN. So far, it's been a great experience and cash flows about $450 per month after property management, maintenance reserves, and other expenses.

For my next deal, I'm interested in pursuing a BRRRR strategy to force appreciation, recycle my capital, and continue growing my portfolio. My current property management company also offers construction management services, and I have a call scheduled with them next week to learn more about how that process works.

I'm curious if anyone here has experience managing a rehab or renovation from across the country. What were the biggest challenges, and what systems or people did you have in place to make it successful?

I'm also trying to better understand the financing side. What loan structures have you used for BRRRR projects, especially as an out-of-state investor? Have you found hard money, DSCR rehab loans, local bank financing, or another option to work best?

I'd love to hear any advice or lessons learned. Thanks in advance!

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Drew SygitBusiness Member
Property Manager · Royal Oak, MI · Member since 2012 · 12k+ posts · 9k+ votes
1mo
Quote from @Dylan Backer:


Hi everyone! This is my first time posting here.

I'm 20 years old and based in Southern California. Earlier this year, I purchased my first rental property a turnkey Section 8 rental in Memphis, TN. So far, it's been a great experience and cash flows about $450 per month after property management, maintenance reserves, and other expenses.

For my next deal, I'm interested in pursuing a BRRRR strategy to force appreciation, recycle my capital, and continue growing my portfolio. My current property management company also offers construction management services, and I have a call scheduled with them next week to learn more about how that process works.

I'm curious if anyone here has experience managing a rehab or renovation from across the country. What were the biggest challenges, and what systems or people did you have in place to make it successful?

I'm also trying to better understand the financing side. What loan structures have you used for BRRRR projects, especially as an out-of-state investor? Have you found hard money, DSCR rehab loans, local bank financing, or another option to work best?

I'd love to hear any advice or lessons learned. Thanks in advance!


We also do this for clients, so familiar with the challenges.

You'll want to "trust but verify"!

We do our best to document EVERYTHING for our clients' renovation projects. 

BEFORE video walk-thrus with narration of issue

Full Scope Of Work (SOW) breakdown of everything that could potentially need work

SOW broken down into: 
- Health & Safety
- Government Required (city inspection & S8)
- Property Preservation
- Marketing Impact
- Miscellaneous

The reason we do this is NOT everything needs to be done, or done right now. 

Too many newbie investors want to replace everything, instead of learning to "Maintain to the Market" and patching instead of replacing.

Once we've documented a SOW, we go over it with an owner to discuss what they actually want done given their budget and target ROI.

During renovations we take a video of the property in its most destructive state (after demo) and then once a week or as needed. Last video is after completion.

Also HIGHLY recommend you fly out and walk the property with your team right after the demo, BEFORE they start putting it back together. Confirm the materials they will be using and any layout changes. 

DM us if you'd like to chat more about protecting yourself...

[email protected]248-209-6824
Logical Property Management4.9450 Reviews
WebsiteView Page
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  • Emanuele Mayer
    Lender · Member since 2022 · 72 posts · 19 votes
    1mo

    Congrats on your first rental! Cash flowing $450 after all expenses is a great start, especially at 20. Just out of curiosity, what made you choose Memphis over other markets? It sounds like you’ve put together a solid plan. Best of luck with your first BRRRR!

    1Reply
  • Dylan Backer
    OP
    Member since 2026 · 3 posts · 6 votes
    1mo

    Thanks I appreciate it. 

    I chose Memphis because I was looking for strong cashflow, relatively affordable and a city full of working class people. I was only interested in a turnkey at the time and found a provider in the city that had this new construction listed with tenet in place. After running the numbers it made enough sense to me so I pulled the trigger. 

    2Reply
    • Emanuele Mayer
      Lender · Member since 2022 · 72 posts · 19 votes
      1mo
      Quote from @Dylan Backer:

      Thanks I appreciate it. 

      I chose Memphis because I was looking for strong cashflow, relatively affordable and a city full of working class people. I was only interested in a turnkey at the time and found a provider in the city that had this new construction listed with tenet in place. After running the numbers it made enough sense to me so I pulled the trigger. 

      That makes a lot of sense. Sounds like you stayed disciplined and stuck to your criteria instead of chasing the first deal you found. I like that you went with a tenant already in place—it definitely helps reduce some of the uncertainty on your first investment. Looking forward to seeing how your BRRRR project turns out!


      0Reply
  • Vijay FriedmanBusiness Member
    Miami, FL · Member since 2026 · 766 posts · 122 votes
    1mo
    Quote from @Dylan Backer:


    Hi everyone! This is my first time posting here.

    I'm 20 years old and based in Southern California. Earlier this year, I purchased my first rental property a turnkey Section 8 rental in Memphis, TN. So far, it's been a great experience and cash flows about $450 per month after property management, maintenance reserves, and other expenses.

    For my next deal, I'm interested in pursuing a BRRRR strategy to force appreciation, recycle my capital, and continue growing my portfolio. My current property management company also offers construction management services, and I have a call scheduled with them next week to learn more about how that process works.

    I'm curious if anyone here has experience managing a rehab or renovation from across the country. What were the biggest challenges, and what systems or people did you have in place to make it successful?

    I'm also trying to better understand the financing side. What loan structures have you used for BRRRR projects, especially as an out-of-state investor? Have you found hard money, DSCR rehab loans, local bank financing, or another option to work best?

    I'd love to hear any advice or lessons learned. Thanks in advance!

    @Dylan Backer
    Dylan, congrats on getting your first rental up and running. For many BRRRR projects, investors use a rehab or bridge loan to acquire and renovate the property, then refinance into a long-term DSCR loan once the property is stabilized and rented. Since you're investing out of state, having a strong local contractor and property management team is just as important as choosing the right financing structure. Best of luck with the next deal!

    786-656-0387
    DreamPoint Capital
    WebsiteView Page
    0Reply
  • Drew SygitBusiness Member
    Property Manager · Royal Oak, MI · Member since 2012 · 12k+ posts · 9k+ votes
    1mo
    Quote from @Dylan Backer:


    Hi everyone! This is my first time posting here.

    I'm 20 years old and based in Southern California. Earlier this year, I purchased my first rental property a turnkey Section 8 rental in Memphis, TN. So far, it's been a great experience and cash flows about $450 per month after property management, maintenance reserves, and other expenses.

    For my next deal, I'm interested in pursuing a BRRRR strategy to force appreciation, recycle my capital, and continue growing my portfolio. My current property management company also offers construction management services, and I have a call scheduled with them next week to learn more about how that process works.

    I'm curious if anyone here has experience managing a rehab or renovation from across the country. What were the biggest challenges, and what systems or people did you have in place to make it successful?

    I'm also trying to better understand the financing side. What loan structures have you used for BRRRR projects, especially as an out-of-state investor? Have you found hard money, DSCR rehab loans, local bank financing, or another option to work best?

    I'd love to hear any advice or lessons learned. Thanks in advance!


    We also do this for clients, so familiar with the challenges.

    You'll want to "trust but verify"!

    We do our best to document EVERYTHING for our clients' renovation projects. 

    BEFORE video walk-thrus with narration of issue

    Full Scope Of Work (SOW) breakdown of everything that could potentially need work

    SOW broken down into: 
    - Health & Safety
    - Government Required (city inspection & S8)
    - Property Preservation
    - Marketing Impact
    - Miscellaneous

    The reason we do this is NOT everything needs to be done, or done right now. 

    Too many newbie investors want to replace everything, instead of learning to "Maintain to the Market" and patching instead of replacing.

    Once we've documented a SOW, we go over it with an owner to discuss what they actually want done given their budget and target ROI.

    During renovations we take a video of the property in its most destructive state (after demo) and then once a week or as needed. Last video is after completion.

    Also HIGHLY recommend you fly out and walk the property with your team right after the demo, BEFORE they start putting it back together. Confirm the materials they will be using and any layout changes. 

    DM us if you'd like to chat more about protecting yourself...

    [email protected]248-209-6824
    Logical Property Management4.9450 Reviews
    WebsiteView Page
    3Reply
  • Evan HoppleBusiness Member
    Real Estate Agent · Columbus Cleveland Dayton, OH · Member since 2023 · 284 posts · 420 votes
    1mo
    Quote from @Dylan Backer:


    Hi everyone! This is my first time posting here.

    I'm 20 years old and based in Southern California. Earlier this year, I purchased my first rental property a turnkey Section 8 rental in Memphis, TN. So far, it's been a great experience and cash flows about $450 per month after property management, maintenance reserves, and other expenses.

    For my next deal, I'm interested in pursuing a BRRRR strategy to force appreciation, recycle my capital, and continue growing my portfolio. My current property management company also offers construction management services, and I have a call scheduled with them next week to learn more about how that process works.

    I'm curious if anyone here has experience managing a rehab or renovation from across the country. What were the biggest challenges, and what systems or people did you have in place to make it successful?

    I'm also trying to better understand the financing side. What loan structures have you used for BRRRR projects, especially as an out-of-state investor? Have you found hard money, DSCR rehab loans, local bank financing, or another option to work best?

    I'd love to hear any advice or lessons learned. Thanks in advance!


    I've found that the success of an out-of-state BRRRR comes down to having a strong local team. A reliable contractor and property manager are critical. Since your property manager also offers construction management, I'd ask how they handle budgets, timelines, change orders, and project updates.

    Your agent also becomes much more important. A successful BRRRR depends on buying the property at the right price, so they should be sourcing value-add opportunities from multiple channels, not just the MLS.

    Many investors finance the purchase with cash or hard money, renovate the property, and then refinance into a long-term loan once it's stabilized. Before buying, I'd also talk with the lender you plan to refinance with so you understand the rent and appraisal needed to support the loan amount you're targeting.

    This strategy has worked particularly well in my Midwest market, where it's still possible to find value-add opportunities that allow you to recycle a large portion of your capital and continue scaling.

    [email protected]614-924-8151
    Reafco Real Estate
    View Page
    0Reply
  • Kyle DeutschmannPro Member
    Investor · Washington, DC · Member since 2017 · 428 posts · 205 votes
    1mo
    Quote from @Dylan Backer:


    Hi everyone! This is my first time posting here.

    I'm 20 years old and based in Southern California. Earlier this year, I purchased my first rental property a turnkey Section 8 rental in Memphis, TN. So far, it's been a great experience and cash flows about $450 per month after property management, maintenance reserves, and other expenses.

    For my next deal, I'm interested in pursuing a BRRRR strategy to force appreciation, recycle my capital, and continue growing my portfolio. My current property management company also offers construction management services, and I have a call scheduled with them next week to learn more about how that process works.

    I'm curious if anyone here has experience managing a rehab or renovation from across the country. What were the biggest challenges, and what systems or people did you have in place to make it successful?

    I'm also trying to better understand the financing side. What loan structures have you used for BRRRR projects, especially as an out-of-state investor? Have you found hard money, DSCR rehab loans, local bank financing, or another option to work best?

    I'd love to hear any advice or lessons learned. Thanks in advance!


    Congrats on getting started so young! You beat me by a few years - I was 24 when I bought my first househack/rental property a few hours away in Nashville. I work with a lot of investors doing the BRRRR strategy - it's a great way to recycle your capital and build a portfolio relatively quickly.

    Managing a rehab from far away can definitely be a challenge - it would help to have a trusted contact (GC you can really trust, another local investor going in 50/50 on a deal with you who can oversee the day-to-day a little more, etc.). In terms of systems - I would try to structure it so that you pay for materials directly to suppliers (allowing you to often finance materials on a credit card if you buy from a big box store) and then pay for labor once the work is completed and inspected by your own point of contact as well as your lender if you're using any sort of rehab/hard money type of financing. 

    Local bank financing might look attractive in terms of rates/fees, but they will typically require a lot more docs and a slower underwriting process making your offers less competitive compared to faster private/hard money lenders. Smaller/local banks will also be more hesitant from my experience working with out of state investors and on rehab projects in general. 

    Good luck on your next deal! Feel free to reach out if I can be a resource. 

    [email protected]
    0Reply
  • Jimmy LieuBusiness Member
    Real Estate Agent · Columbus, OH · Member since 2019 · 3k+ posts · 2k+ votes
    1mo
    Quote from @Dylan Backer:


    Hi everyone! This is my first time posting here.

    I'm 20 years old and based in Southern California. Earlier this year, I purchased my first rental property a turnkey Section 8 rental in Memphis, TN. So far, it's been a great experience and cash flows about $450 per month after property management, maintenance reserves, and other expenses.

    For my next deal, I'm interested in pursuing a BRRRR strategy to force appreciation, recycle my capital, and continue growing my portfolio. My current property management company also offers construction management services, and I have a call scheduled with them next week to learn more about how that process works.

    I'm curious if anyone here has experience managing a rehab or renovation from across the country. What were the biggest challenges, and what systems or people did you have in place to make it successful?

    I'm also trying to better understand the financing side. What loan structures have you used for BRRRR projects, especially as an out-of-state investor? Have you found hard money, DSCR rehab loans, local bank financing, or another option to work best?

    I'd love to hear any advice or lessons learned. Thanks in advance!

    First off, congrats on getting your first rental at 20 and having it cash flow that well. That's a great foundation. Managing a BRRRR remotely is definitely doable, but I think the biggest factor is having the right team on the ground. I'd want a contractor who sends frequent photo and video updates, a property manager who's willing to stop by periodically, and a detailed scope of work with draw schedules tied to completed milestones. That helps avoid surprises and keeps everyone accountable. On the financing side, I've seen investors successfully use hard money for speed and flexibility, then refinance into a long-term DSCR loan once the rehab is complete and the property is stabilized. The key is making sure the numbers still work even if the rehab takes longer or costs more than expected, so build in a healthy contingency. If you're planning to keep buying out of state, I'd also recommend focusing on one market and learning it really well instead of spreading yourself too thin. Happy to connect and answer any questions you have!

    [email protected]614-300-7535
    Jimmy Lieu, Red 1 Realty4.9119 Reviews
    WebsiteView Page
    1Reply
  • Ismael El Hamdouchi
    Member since 2025 · 68 posts · 28 votes
    1mo

    One thing I’ve noticed is that almost every experienced investor I’ve talked with says the biggest challenge isn’t actually finding the deal, it’s building a reliable local team before you buy. Curious to hear from people who’ve done this successfully: what was the first local relationship that made the biggest difference for you? Was it the property manager, contractor, lender, or someone else?

    0Reply
  • Josh HandlerPro Member
    Contractor · Memphis, TN · Member since 2026 · 53 posts · 58 votes
    1mo

    Congrats, cash flowing $450 on your first one at 20 is a real head start. Since your next one is a BRRRR in Memphis specifically, a few things from the ground here.

    The BRRRR math lives or dies on the scope and the ARV comp, not the financing. Before you buy, get a real line-item scope of work with a draw schedule tied to completed milestones, and get your refinance lender's rent and appraisal targets in writing first, so you're renovating to hit an actual number instead of hoping. Build in a 15-20% contingency because older Memphis stock hides things.

    Memphis-specific items that blow up rehab budgets: pre-1965 houses often have cast iron drain lines and galvanized supply on their last legs, so scope the sewer line before you close. Older panels and cloth wiring mean a panel upgrade is common, and Section 8 will fail you on missing GFCIs anyway. A lot of the cash-flow neighborhoods are pier-and-beam on clay soil, so leveling and foundation work can be a real line item. None of it is a dealbreaker, you just want it priced in before you own it, not discovered after.

    On the team question, that is the whole game out of state. Asking your PM's construction arm the right questions is the smart move. I'd pin them down on who writes the scope, who eats overages past the estimate, how draws get released, and how often you get photo and video updates. The projects that go sideways are the ones where the PM, the contractor, and whoever approves change orders are three different companies pointing at each other. The tighter that loop, the more passive a remote BRRRR actually is.

    Full disclosure, I run a construction and property-services company here in Memphis that does investor rehabs and turns, so this is what I look at all week. Happy to be a sounding board as you scope the next one.

    901-239-3970
    0Reply
  • James JonesPro Member
    Investor · Collierville, TN 38017 · Member since 2017 · 589 posts · 445 votes
    1mo

    @Dylan Backer congrats — a cash-flowing S8 turnkey in Memphis at 20 is a serious head start. Since you're already in Section 8 and Memphis is my home market, let me give you the angle nobody's hit yet: how S8 and BRRRR work together, plus one honest heads-up.

    Honest part first: buying a turnkey and running a BRRRR are almost totally different skill sets. On the turnkey, someone else found the deal, fixed it, and placed the tenant. A BRRRR lives or dies on buying ugly at a real discount and nailing the rehab + the refi appraisal — so treat your first one as a learning rep, keep a fat contingency, and don't over-leverage into it.

    Where Section 8 actually helps your BRRRR:

    - If the next one is also S8, build the HQS inspection list INTO your scope of work from day one — GFCIs, handrails, window locks/egress, no chipping paint, working smoke/CO detectors. New investors get failed on these, which delays the "rent" step, which delays your refinance. Bake it in and you pass first try.

    - The voucher payment standard can push your refi rent above open-market in a lot of Memphis value zips — and since DSCR refis are underwritten off the rent, a higher S8 rent means a stronger refi and more capital back out. Pull the payment standard for the zip before you buy (free tool, search "section8guys app") so you underwrite the refi rent correctly.

    On the PM-as-GC: convenient, but when one company scopes the work, does the work, and reports on the work, you've lost your independent check. At minimum get the full line-item scope + draw schedule in writing and your own eyes on it (photos/video tied to each draw) before releasing money.

    You're asking the right questions this early. I run a free community where a lot of the Memphis + Section 8 + BRRRR stuff gets worked through — happy to have you in and help you scope the first one. Feel free to reach out.

    1Reply
  • Jordan RayBusiness Member
    Real Estate Agent · Memphis, TN · Member since 2023 · 623 posts · 321 votes
    1mo
    Quote from @Dylan Backer:


    Hi everyone! This is my first time posting here.

    I'm 20 years old and based in Southern California. Earlier this year, I purchased my first rental property a turnkey Section 8 rental in Memphis, TN. So far, it's been a great experience and cash flows about $450 per month after property management, maintenance reserves, and other expenses.

    For my next deal, I'm interested in pursuing a BRRRR strategy to force appreciation, recycle my capital, and continue growing my portfolio. My current property management company also offers construction management services, and I have a call scheduled with them next week to learn more about how that process works.

    I'm curious if anyone here has experience managing a rehab or renovation from across the country. What were the biggest challenges, and what systems or people did you have in place to make it successful?

    I'm also trying to better understand the financing side. What loan structures have you used for BRRRR projects, especially as an out-of-state investor? Have you found hard money, DSCR rehab loans, local bank financing, or another option to work best?

    I'd love to hear any advice or lessons learned. Thanks in advance!


    Welcome to BiggerPockets! Congratulations on getting your first rental under your belt—that's a huge milestone, especially at 20 years old. Since you've already had success with a turnkey property in Memphis, I think the BRRRR strategy is a great next step because it gives you the opportunity to recycle your capital and scale much faster. For out-of-state rehabs, I think success comes down to having the right boots-on-the-ground team. I'd recommend becoming an expert at analyzing ARVs, rents, market trends, and understanding the overall layout of Memphis so you know exactly what you're buying before you ever make an offer. From there, surround yourself with an investor-friendly agent who also owns rentals, a solid property manager, a reliable general contractor, and the right lending contacts. If you're considering financing options, I've had great experiences with local hard money lenders in Memphis that finance 100% of the purchase and 100% of the rehab. They also fund rehab draws throughout the project, so you don't have to front the construction costs yourself while waiting for reimbursement. Many investors are able to complete deals with around $10,000 out of pocket before refinancing into long-term financing with a DSCR or conventional loan once the property is stabilized. The biggest lesson I've learned is that a successful BRRRR isn't just about buying the right property—it's about having a repeatable system and a team you trust. Once those pieces are in place, scaling becomes much more predictable. Feel free to reach out, talk soon!

    [email protected]662-642-1458
    Jordan Ray - eXp Realty5110 Reviews
    WebsiteView Page
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  • Arman AhmedPro Member
    Real Estate Agent · Columbus Cleveland Dayton, OH · Member since 2024 · 2k+ posts · 904 votes
    1mo
    Quote from @Dylan Backer:


    Hi everyone! This is my first time posting here.

    I'm 20 years old and based in Southern California. Earlier this year, I purchased my first rental property a turnkey Section 8 rental in Memphis, TN. So far, it's been a great experience and cash flows about $450 per month after property management, maintenance reserves, and other expenses.

    For my next deal, I'm interested in pursuing a BRRRR strategy to force appreciation, recycle my capital, and continue growing my portfolio. My current property management company also offers construction management services, and I have a call scheduled with them next week to learn more about how that process works.

    I'm curious if anyone here has experience managing a rehab or renovation from across the country. What were the biggest challenges, and what systems or people did you have in place to make it successful?

    I'm also trying to better understand the financing side. What loan structures have you used for BRRRR projects, especially as an out-of-state investor? Have you found hard money, DSCR rehab loans, local bank financing, or another option to work best?

    I'd love to hear any advice or lessons learned. Thanks in advance!


    You’re already ahead of the game with a cash-flowing first rental and a plan to BRRRR next. The biggest thing with out-of-state rehabs is having a real system for updates, scope control, and accountability on the ground so surprises do not eat your margin. For financing, a lot of investors use hard money or local bank money first, then refinance once the deal is stabilized.
    [email protected]614-418-6081
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  • Ashish AcharyaBusiness Member
    CPA, CFP®, PFS · FL · Member since 2017 · 5k+ posts · 3k+ votes
    1mo

    For an out-of-state BRRRR, I would make the construction-management process as measurable as possible: a line-by-line scope of work, fixed approval limits for change orders, a draw schedule tied to completed work, weekly photos or video walkthroughs, and copies of every invoice and receipt. Even when the property manager oversees the rehab, you should still have an independent inspection before releasing major draws.

    On financing, work backward from the refinance. Before choosing hard money, a rehab loan, or bank financing, confirm the lender's seasoning period, maximum loan-to-cost and after-repair-value limits, draw process, appraisal requirements, extension fees, and DSCR standards for the permanent loan. A cheap acquisition loan can become expensive if the refinance requirements do not match the project timeline.

    From the tax side, set up detailed cost tracking before the rehab begins. Purchase costs, financing costs, repairs, capital improvements, travel, and operating expenses should not all be placed into one category. Many renovation costs must be added to the property’s basis rather than deducted immediately, and depreciation generally begins once the property is ready and available to rent. Properly documented business travel may also be deductible, depending on the purpose and circumstances of the trip.

    Happy to connect!

    [email protected]941-914-7779
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  • Danny Gonzalez
    Real Estate Broker · Member since 2024 · 125 posts · 60 votes
    1w

    Congrats on the Memphis turnkey. $450 after PM and reserves is a clean first win. On the OOS BRRRR side, the piece that usually bites people isn't the buy, it's rehab oversight and lease-up when you're not local. If you go that route next, I'd underwrite vacancy and a real contingency harder than the purchase price.

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