Anyone have Experience doing a BRRRR out of state

[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!

[Drew Sygit]

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...