$400k and a dream.

$400k and a dream.

Fountain Hills, AZ · Member since 2021 · 4 posts · 6 votes

Hi everyone, my name is Joe. I am currently living in Fountain Hills, Arizona, but my wife and I are preparing for a move to Montana.

I am still early in my real estate investing journey, but I have been spending a lot of time learning about the BRRRR method, value add renovations, small multifamily properties, rental analysis, and property management. I am currently renovating my own home and learning how to complete as much of the work myself as possible.

My plan is to eventually sell our Arizona home, use about $400k of the equity to begin building a rental portfolio, and temporarily rent while I focus on acquiring and renovating properties. I am primarily interested in duplexes, triplexes, fourplexes, and other properties where I can force appreciation through improvements and refinance after stabilization.

Right now, I am researching markets throughout Montana, especially Great Falls and the Missoula area. My goal is to build a long term rental portfolio that produces consistent cash flow while allowing me to eventually work in real estate full time.

I joined BiggerPockets to learn from experienced investors, improve my underwriting, connect with contractors, lenders, agents, and property managers, and avoid some of the common mistakes new investors make.

I would especially like to connect with investors who have experience with BRRRR projects, small multifamily properties, or investing in Montana. I am excited to learn and contribute as I gain experience.

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  • Noah CorwickPro Member
    Realtor · Phoenix, AZ · Member since 2021 · 276 posts · 117 votes
    3mo

    Hi Joseph,

    I honestly don't blame you for having enough of our brutal AZ summers!

    I work with investor clients who BRRRR and who also invest in multi family. The key to BRRRRs is getting in at the right price point.

    For MFH, is an option to house hack the property you eventually purchase in Montana?

    Also one thing to be cautious about for your Fountain Hills home is if you're doing any large home projects yourself, familiarize yourself with the Handyman Exception (https://gottlieblawaz.com/2024/08/19/what-is-the-az-handyman). 

  • Fountain Hills, AZ · Member since 2021 · 4 posts · 6 votes
    3mo

    Thank you for replying and for the link! That is very helpful. 

  • Lender · Member since 2022 · 72 posts · 19 votes
    3mo

    Welcome, Joe! It sounds like you've put a lot of thought into your plan before jumping in, and that's a great approach. Renovating your own home is also valuable experience that will definitely help with future projects. Wishing you the best with your move to Montana and your first BRRRR!

  • Drew SygitBusiness Member
    Property Manager · Royal Oak, MI · Member since 2012 · 13k+ posts · 9k+ votes
    3mo
    Quote from @Joseph M Lemon:

    Hi everyone, my name is Joe. I am currently living in Fountain Hills, Arizona, but my wife and I are preparing for a move to Montana.

    I am still early in my real estate investing journey, but I have been spending a lot of time learning about the BRRRR method, value add renovations, small multifamily properties, rental analysis, and property management. I am currently renovating my own home and learning how to complete as much of the work myself as possible.

    My plan is to eventually sell our Arizona home, use about $400k of the equity to begin building a rental portfolio, and temporarily rent while I focus on acquiring and renovating properties. I am primarily interested in duplexes, triplexes, fourplexes, and other properties where I can force appreciation through improvements and refinance after stabilization.

    Right now, I am researching markets throughout Montana, especially Great Falls and the Missoula area. My goal is to build a long term rental portfolio that produces consistent cash flow while allowing me to eventually work in real estate full time.

    I joined BiggerPockets to learn from experienced investors, improve my underwriting, connect with contractors, lenders, agents, and property managers, and avoid some of the common mistakes new investors make.

    I would especially like to connect with investors who have experience with BRRRR projects, small multifamily properties, or investing in Montana. I am excited to learn and contribute as I gain experience.


    WHy wouldn't you buy a 2-4 unit, live in one unit and rent the rest?

    It's called househacking and it's really the BEST way to learn real estate investing.

    You get hands-on experience dealing with agents, showings, renovations, tenants, maintenance and on and on.

    This experience will be INVALUABLE as you grow your portfolio!

    Especially if you ever hire a PMC. 
    You will know if they're doing what you hired them to do and avoid incompetency and getting ripped off.

    You may even want to experiment with MTR and STR as it'll be right next door and relatively easy to handle.

    DM me if you'd like to chat more about all this:) 

  • Wale LawalBusiness Member
    Real Estate Broker · Houston | Dallas | Austin, TX · Member since 2018 · 5k+ posts · 2k+ votes
    3mo

    @Joseph M Lemon

    It seems like you have developed a well thought out strategy and you are being mindful of developing the right set of skills before making any investments. As far as BRRRRs go, my advice would be to buy based on today’s numbers and not on appreciation in the future and take time to build a great local team.

    Good luck!

  • Patrick O'SullivanBusiness Member
    Property Manager · Phoenix, AZ · Member since 2024 · 551 posts · 210 votes
    3mo

    Hey Joe, welcome. Renovating your own place first is a smart move, that experience is going to help a ton once you're underwriting real deals.

    Only thing I'd add on top of what others said, don't get too optimistic on the numbers for your first few BRRRRs. If the deal still pencils out without stretching anything, you'll have way more breathing room if the market moves on you.

    Good luck out in Montana. Come back and tell us how the first one goes.

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