Looking for Thoughts on BRRRR Method in this Market
Hi All,
I am a relatively new investor without a lot of capital to start out with. I have been watching the markets for the past year or so looking for a property that I can use the BRRRR method on, but what I have been seeing is that the homes that require work are selling for WAY more than they should in their condition. With these prices, it's making finding a cash flowing property after refinance nearly impossible.
My question for the group is this: has anyone else noticed and/or struggled with this? If so, what do you recommend for trying to get properties? At this rate I feel like I'll only find a property once every 5 years. For reference I am in the northeast. Thanks all in advance!!
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#5 Starting Out Contributor
- Real Estate Consultant
- Madison, NJ
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#5 Starting Out Contributor
- Real Estate Consultant
- Madison, NJ
In today's market if you are "without a lot of capital to start out with" as you said, most strategies aren't going to work or be worth your while right now. Now is the time to learn and go to meetups and save money. Most people who ask this type of question when they are new forget that you need a minimum of 15k reserves on any property.
If you just boil down BRRRR, you can't do it without money because it's not a flip, it's a rent/refinance so you need money for a downpayment and money for the rehab.
- Jonathan Greene
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- Podcast Guest on Show #667
