Getting ready to do my first BRRRR. Any advice?
Arvada, CO · Member since 2016 · 14 posts · 20 votes
Getting ready to do my first BRRRR. Any advice?
Most Popular Reply
Jeremy TaggartBusiness Member
Real Estate Agent · Pittsburgh, PA · Member since 2014 · 850 posts · 646 votes@Justin Miller Single family homes typically present the most opportunity for BRRRR deals here. You tend to see more of those versus multis where you can be all in (purchase + rehab) for <80% of ARV on something where you can go in and be refinanced within 6-12 months. Most of the multi deals end up being multi year BRRRRs since less of those are fully vacant ( in the good areas) and ready to rehab while also having the equity margin.
Downside is the single family homes won't really cash flow much after the refi assuming you are refinancing at 70-80% LTV with todays interest rates. The multis will but it's tougher to get the equity position on those.
A strategy I like is doing a BRRRR with a single familiy and then eventually planning on selling the single family and trading the equity in for the down payment on a cash flowing multi down the road. Making it 2 steps instead of 1 like you used to be able to do when you could cash flow and get 20%+ equity on the same property.
Typically will have to focus on areas with ARVs of 150-225k to stay in the correct rent/price ratio on the backend while still providing for enough margin to get equity. If you go below 150k ARV neighborhoods those can be tougher if something unknown pops up on the rehab along with being a little harder management wise on the backend. If you go too high in ARV those tend to make more sense as flips rather than holds because the rent/price ratios start to fade.
I'm also a fan of 5+ unit BRRRRs because of how those are valued based on NOI and cap rates but just won't see as many of those as you will on single family.
Regardless, because of the older housing stock and lower prices Pittsburgh presents a lot of opportunity to make money in value add investing if you are willing to put forth the effort and time.
DHRE- The Jeremy Taggart Team590 Reviews
31 Replies
- 2moJeremy TaggartBusiness MemberReal Estate Agent · Pittsburgh, PA · Member since 2014 · 850 posts · 646 votes
@Justin Miller Single family homes typically present the most opportunity for BRRRR deals here. You tend to see more of those versus multis where you can be all in (purchase + rehab) for <80% of ARV on something where you can go in and be refinanced within 6-12 months. Most of the multi deals end up being multi year BRRRRs since less of those are fully vacant ( in the good areas) and ready to rehab while also having the equity margin.
Downside is the single family homes won't really cash flow much after the refi assuming you are refinancing at 70-80% LTV with todays interest rates. The multis will but it's tougher to get the equity position on those.
A strategy I like is doing a BRRRR with a single familiy and then eventually planning on selling the single family and trading the equity in for the down payment on a cash flowing multi down the road. Making it 2 steps instead of 1 like you used to be able to do when you could cash flow and get 20%+ equity on the same property.
Typically will have to focus on areas with ARVs of 150-225k to stay in the correct rent/price ratio on the backend while still providing for enough margin to get equity. If you go below 150k ARV neighborhoods those can be tougher if something unknown pops up on the rehab along with being a little harder management wise on the backend. If you go too high in ARV those tend to make more sense as flips rather than holds because the rent/price ratios start to fade.
I'm also a fan of 5+ unit BRRRRs because of how those are valued based on NOI and cap rates but just won't see as many of those as you will on single family.
Regardless, because of the older housing stock and lower prices Pittsburgh presents a lot of opportunity to make money in value add investing if you are willing to put forth the effort and time.
DHRE- The Jeremy Taggart Team590 Reviews - 2moStuart UdisPro MemberAttorney · Philadelphia · Member since 2018 · 2k+ posts · 3k+ votes
@Justin Miller "But everything is in order to get my money out in the end".....That's the mistake in your analysis. When you are hyper focused on getting your capital out, you ignore or fail to place enough emphasis on market fundamentals that are more indicative of long term sustainability, rent growth, property appreciation etc.
Furthermore, it's very easy to manipulate a construction budget to achieve a "successful" brrrr result by ignoring major systems that are nearing the end of their useful life. As a result, getting your capital out through a refinance is prioritized which truthfully means nothing in the greater context of owning real estate. All it usually means is capital out and capital back in and when the neglected repair needs attention because it's now impacting the habitability of a tenant occupied property. Making matters worse, the investor is usually already onto the next project, the capital needed to address the major cap ex event is tied up in the next project, tenant relations fail and the entire process crumbles. Seeing it more and more and that's the trap you want to avoid.
- Member since 2025 · 68 posts · 28 votes2mo
That’s a great perspective. Looking back, what metric has ended up being the best predictor of a successful long-term rental for you? Cash flow, neighborhood fundamentals, tenant quality, appreciation, or something else?
- 2moAndrew PostellPro MemberLender · Fort Worth, TX · Member since 2016 · 8k+ posts · 6k+ votes
@Justin Miller Generally speaking you will need several things to successfully complete a BRRRR:
- ARV - being able to calculate the Value on your own (meaning, without the wholesaler telling you the value) is really important.
- Repairs - You will likely need to know how to budget the repairs as well. Getting a contractor can be extremely frustrating especially if you need to make an offer without even looking at the property. How do you calculate repairs without a contractor? You may need to lean on other local real estate investors in the beginning. Or maybe even just focus on properties with a very light rehab?
- Lenders - You will need a lender on your BUY step and on your REFINANCE step. And I would HIGHLY recommend to read this article I wrote for Bigger Pockets on how to find good lenders that you can find HERE. If they are good, they should be absolutely definitive on rate, terms, costs, etc. Trust me, many lenders will tell you they can do this...but it's very rare to find. When I first started BRRRR'ing my properties lenders would tell me "That's illegal"....it's not, they just didn't know anything about it.
- Finding Properties - and this is the absolute hardest step of anything right now. So network like crazy and find some good resources. It's going to be hard...but if it were easy then anyone could do it.
- Arvada, CO · Member since 2016 · 14 posts · 20 votes2mo
Thanks for all the responses. I think I'm covered on most of that. I'm looking at duplexes though. And I've crunched the numbers on sale price, renovation costs, and final ARV. Not really sure where to get that DSCR loan once I'm done. I'm driving out to Pittsburgh in a couple hours to look at some properties tomorrow. Hopefully the ones that I've been monitoring work out.
- 2moJordan RayBusiness MemberReal Estate Agent · Memphis, TN · Member since 2023 · 642 posts · 333 votes
Quote from @Justin Miller:
I own a couple local properties in Denver I long-term rent. I also have a condo in Chicago I mid-term rent when I'm not using it for the summer. But I've been wanting to buy more and never figured out how.
Recently I realized I could tap the equity in my primary residence with a HELOC and decided it was time to start investing this year in BRRRR since I want to try and do it again every year. After doing some research I've chosen Pittsburgh for the location and will drive out there in a couple of days to meet with a real estate agent and contractor to view a couple places.
I'm not sure how others get started. I just do a ton of research. But I'd love advice and suggestions as I start down this long road. Being a landlord and even a remote landlord is not new to me. Nor is the renovation process. But everything is in order to get my money out in the end so I can do it the next year or just six months later.
Welcome to BiggerPockets! It sounds like you've already done one of the hardest parts, which is taking action after doing your research. If your goal is to repeat the BRRRR process every year—or even every six months—I'd spend just as much time building your team as you do analyzing deals. The numbers only work if the execution does. I'd recommend becoming an expert at analyzing ARVs, rents, market trends, and understanding the neighborhoods you're buying in before making offers. Having a trustworthy boots-on-the-ground team is just as important, especially when you're investing remotely. That means an investor-friendly agent who also owns rentals, a solid property manager, a reliable general contractor, and the right lending contacts. One of the reasons I like Memphis for BRRRR investing is that there are still opportunities where properties can meet or exceed the 1% rule while also benefiting from appreciation over time if you buy in the right locations. Another advantage is that local hard money lenders will often finance 100% of the purchase and 100% of the rehab, allowing many investors to get into deals with around $10,000 out of pocket before refinancing into long-term financing. That lets you preserve your HELOC for reserves or additional opportunities rather than tying up all of your available capital in one project. It sounds like you're approaching this with the right mindset, and once you establish a repeatable system with a strong local team, scaling becomes much more predictable. Feel free to reach out, talk soon!
Jordan Ray - eXp Realty5112 Reviews - Contractor · Louisville, KY · Member since 2026 · 2 posts · 1 vote2moAfter 20 years in construction and remodeling; and now helping investors and homeowners as an owner's rep. I see the same handful of red flags come up over and over. Sharing a few here in case it helps anyone in this group vetting bids right now.A big upfront deposit with no milestone schedule Neither Kentucky nor Indiana caps deposits by law, so it's on you to negotiate. A reasonable deposit is typically in the 10-30% range depending on project size. Anything approaching half the total cost up front, with no payment tied to actual progress, should give you pause.A vague, one-line scope of work "Kitchen remodel - $18,000" tells you nothing. A solid bid breaks work into line items, names materials/brands (not just "standard" or "builder grade"), and specifies what's actually included and what's not.No mention of a change order process Ask upfront: if something changes mid-project, how will it be priced and approved? If the bid is silent on this, you're exposed to open-ended pricing later.Can't (or won't) show proof of insurance Always ask for a certificate of insurance directly; not just a verbal "yeah I'm insured." A legitimate contractor will have this ready to send in minutes.Pressure to sign same-day, or a price that "expires tomorrow" Real contractors want you to feel confident, not rushed. Urgency tactics are a classic sign something's being hidden; usually a price or scope that wouldn't hold up to scrutiny with more time.Reluctance to answer specific technical questions Someone bidding a job should be able to speak fluently about the actual work; roof system type, materials, sequencing, code requirements. Vague or deflecting answers to specific questions are worth noticing.No written contract: "we'll figure it out as we go" If it's not in writing, it's not enforceable. Verbal agreements protect no one once a disagreement starts.*Hope this helps someone vetting bids right now. Happy to answer questions in the comments if anyone's working through a bid and wants a second set of eyes.
Quote from @Justin Miller:
I own a couple local properties in Denver I long-term rent. I also have a condo in Chicago I mid-term rent when I'm not using it for the summer. But I've been wanting to buy more and never figured out how.
Recently I realized I could tap the equity in my primary residence with a HELOC and decided it was time to start investing this year in BRRRR since I want to try and do it again every year. After doing some research I've chosen Pittsburgh for the location and will drive out there in a couple of days to meet with a real estate agent and contractor to view a couple places.
I'm not sure how others get started. I just do a ton of research. But I'd love advice and suggestions as I start down this long road. Being a landlord and even a remote landlord is not new to me. Nor is the renovation process. But everything is in order to get my money out in the end so I can do it the next year or just six months later.
- Arvada, CO · Member since 2016 · 14 posts · 20 votes2mo
@Brad M. Lee Jr. I totally agree. I've had some bad experiences with some contractors who never finished the job when they told me that we get done in six weeks. 16 weeks later I had to cut them loose. Learned a few lessons from that so hopefully those teachings will help me in this first BRRRR.
- Member since 2025 · 68 posts · 28 votes2mo
Of all the red flags you mentioned, which one do first-time investors overlook the most? Is there one mistake that usually ends up costing people the most money?
- 2moNicholas L.Pro MemberFlipper/Rehabber · Pittsburgh · Member since 2018 · 6k+ posts · 5k+ votes
you got great advice from @Jeremy Taggart.
i agree that SFHs are better than small multi. small multis in Pittsburgh can be very odd. shared utilities, lopsided units (eg a 4/2 and a studio) and inconsistent ARVs.
i think folks often underestimate how much of a discount they have to buy at in order to make the numbers work. and then you almost certainly will not cash flow when you're done.
hope this helps. are you here all week? happy to connect if you want to DM me. nothing to sell.
- Arvada, CO · Member since 2016 · 14 posts · 20 votes2mo
Thanks for all the input. I just got here to Pittsburgh. Never been here before. Drove around just to get the layer of the land and understand the situation when it comes to real estate out here. Can’t say I have the money to get into places like Lawrenceville, Bloomfield, Shadyside, or Squirrel Hill. Focused at the moment is on the South Side Flats. Not really sure I understand people’s concerns with duplexes. When I crunch the numbers SFHs just doesn’t work in terms of rent compared to a duplex. Also has anyone worked with Mark from American Eagle Properties? He’s coming with me to review the properties. Hopefully one of them will work.
- Specialist · NJ · Member since 2022 · 1k+ posts · 653 votes2mo
I know the pittsburgh market very well and I am very plugged in there. I get off market deals come to me all the time. I work with an agent/investor who knows the market street by street, I can introduce you if you want. He's always looking for deals and comes across a bunch. Direct from seller, auction, off market. He sources in a whole bunch of ways.
- Arvada, CO · Member since 2016 · 14 posts · 20 votes2mo
@Mike Klarman sure. Happy to talk with someone. I'm still crunching the numbers with the one I'm focused on right now but if it doesn't work out, I'm always open to something else. that's what I got the HELOC for.
- 2moVijay FriedmanBusiness MemberMiami, FL · Member since 2026 · 766 posts · 123 votes
Quote from @Justin Miller:
I own a couple local properties in Denver I long-term rent. I also have a condo in Chicago I mid-term rent when I'm not using it for the summer. But I've been wanting to buy more and never figured out how.
Recently I realized I could tap the equity in my primary residence with a HELOC and decided it was time to start investing this year in BRRRR since I want to try and do it again every year. After doing some research I've chosen Pittsburgh for the location and will drive out there in a couple of days to meet with a real estate agent and contractor to view a couple places.
I'm not sure how others get started. I just do a ton of research. But I'd love advice and suggestions as I start down this long road. Being a landlord and even a remote landlord is not new to me. Nor is the renovation process. But everything is in order to get my money out in the end so I can do it the next year or just six months later.
@Justin Miller
Justin, it sounds like you've already done a lot of the groundwork by choosing a market and lining up local professionals. Since you're using a BRRRR strategy, I'd make sure you understand your refinance exit before buying—especially the expected after-repair value, rental income, and how much capital you'll realistically be able to recycle. Having those numbers dialed in upfront can make the whole process much smoother. Best of luck with your first BRRRR! - 2moGarrett CrosbyPro MemberReal Estate Agent · Los Angeles, United States · Member since 2021 · 392 posts · 162 votes
Justin, sounds like you're way ahead of most first-timers - you already own rentals and have been through the reno process, so the muscle memory is there. Two things from your posts I'd weigh in on since they haven't really been answered yet.
On the DSCR refi: line that lender up before you buy, not after. Get a DSCR lender to pre-quote you now on the exact property type and market so you know your refi rate, LTV (usually 70-75% cash-out), seasoning period, and their minimum DSCR ratio. Plenty of national DSCR shops lend in Pittsburgh, and a good local investor-friendly agent or the BP lender finder will get you a few names fast. The BRRRR lives or dies on that back-end number, so don't leave it to figure out later.
On the duplex vs. SFH debate: you're not wrong that duplexes usually pencil better on rent. The pushback you're getting is really about the refi appraisal, not the rent. A 2-4 unit in a lot of Pittsburgh pockets gets appraised on comps, and there just aren't many clean duplex sales to comp against, so appraisals come in lumpy and you can get stuck leaving more money in the deal than your spreadsheet says. SFHs comp cleaner, so your cash-out is more predictable - that's the real trade-off. Neither is right, they just fail in different ways. If the duplex numbers are strong enough to survive a soft appraisal, run it.
I invest out of state myself, so the one thing I'd add: on your first remote BRRRR, build the budget around your worst month and pad your rehab contingency more than feels necessary. The deals that go sideways from a distance are almost always the ones where the reno number was too tight to absorb a surprise.
Feel free to DM if you want to talk through the refi structure or the duplex numbers - happy to help.
- Member since 2025 · 68 posts · 28 votes2mo
That’s a really interesting distinction. I hadn’t thought about appraisal risk being the trade-off rather than cash flow itself. For someone buying out of state, is there anything you look for before making an offer that helps you gauge whether the appraisal is likely to come in where you expect?
- Arvada, CO · Member since 2016 · 14 posts · 20 votes2moWell, this is an end to this part of the journey. Saw the property. Both my agent and contractor recommend I don’t try to do all the work that I wanted to do. Not that I really can now that I’ve seen it since there were things missing on the diagram of the property that are painfully obvious once you get there. But regardless the point is that as many of you have already stated a good BRRR is not gonna be something you find on the open market. And you’re right. But I also realize I don’t want to do a BRRR. A BRRR that’s going to work is not going to be in a place where I could MTR it. It’s probably gonna be a LTR situation and that’s not what I wanna do. So I am giving up already on trying to achieve a BRRR. I’m more about cash flow and that’s fine. As I mentioned, I already have three other properties that cash flow pretty well and if I can add a fourth, the cash flow will fund of the money that is stuck in the deal. So I guess now it’s just time to focus on finding a MTR that meets my rental requirements as well as the money that I have available to invest. Anyway, thanks everyone for sharing with me. Really appreciate it. I’ve just driven about 10 hours now out of Pittsburgh and in Chicago. In a couple days, I may stop through Kansas City to see if there are some good MTR options there.
- Contractor · Chicago, IL · Member since 2016 · 4k+ posts · 2k+ votes2mo
How did you end up owning in Denver and Chicago @Justin Miller? Where is your Chicago property.
Network, Research, Analysis, offers...sounds like you are already doing it all!I think for me, where I always got things a bit messed up was the lack of focus. I said yes to everything in every location around Chicago and yes to every strategy. In hindsight, I'd rather find one neighborhood and one strategy...that way you can build scalable systems which actually allow you to build a business.
Quality Builders4.966 Reviews- Arvada, CO · Member since 2016 · 14 posts · 20 votes2mo
@Jonathan Klemm I move to Denver from Detroit in 2017 after failing to buy in Detroit. In 2019 I was able to get enough capital together to buy two properties. A few years later during covid I found a condo in a building with no restrictions on lease length and bought it to mid term rent it. A year later I had the idea of buying land in Santa Cruz. That last one didn't work out so well. By this point my debt to income ratio was too high to get another loan undercurrent rates. This year I realized I had half a mil in equity in my primary residence. So I'll be closing on a HELOC on Friday to tap that equity. Hence why I'm working on a plan to utilize it now. Fun times!
- Member since 2025 · 68 posts · 28 votes2mo
Looking back, how long did it take you before you settled on one market and one strategy? Was it a conscious decision, or did experience naturally push you in that direction?
- 2moAshish AcharyaBusiness MemberCPA, CFP®, PFS · FL · Member since 2017 · 5k+ posts · 3k+ votes
Since you're pulling equity through a HELOC on your primary residence to fund the BRRRR, get that money into its own account and trace it directly to the Pittsburgh purchase, that's what keeps the interest deductible against the rental once it's placed in service, mixing it with other funds even briefly muddies that trail if it's ever questioned. Given your mix of Denver long-term rentals, the Chicago mid-term condo, and now a Pittsburgh BRRRR, that's three states worth of nonresident filings depending on where you actually live, each one taxing that respective rental income separately with your home state layering worldwide income on top, worth having that mapped out clearly now rather than after the fourth or fifth property adds another state to track.
On the BRRRR mechanics themselves, the cash out refi that pulls your capital back out isn't a taxable event, it's just debt, so doing this annually doesn't create a recurring tax bill the way selling would. Cost segregation is worth running every single year you do this, since each Pittsburgh purchase resets with a fresh basis, that's actually one of the better parts of doing BRRRR annually rather than once, you get a new round of accelerated depreciation each time instead of one lump sum.
Happy to connect!
INVESTOR FRIENDLY CPA®5240 Reviews - 2moDrew SygitBusiness MemberProperty Manager · Royal Oak, MI · Member since 2012 · 12k+ posts · 9k+ votes
Quote from @Justin Miller:
I own a couple local properties in Denver I long-term rent. I also have a condo in Chicago I mid-term rent when I'm not using it for the summer. But I've been wanting to buy more and never figured out how.
Recently I realized I could tap the equity in my primary residence with a HELOC and decided it was time to start investing this year in BRRRR since I want to try and do it again every year. After doing some research I've chosen Pittsburgh for the location and will drive out there in a couple of days to meet with a real estate agent and contractor to view a couple places.
I'm not sure how others get started. I just do a ton of research. But I'd love advice and suggestions as I start down this long road. Being a landlord and even a remote landlord is not new to me. Nor is the renovation process. But everything is in order to get my money out in the end so I can do it the next year or just six months later.
Why are you targeting a new, unfamiliar market with zero contacts?
You're already somewhat established in CO and Chicago, so why not explore opportunities in those markets?
Guarantee there are some there - you just haven't networked enough to find them:)
Logical Property Management4.9460 Reviews- Arvada, CO · Member since 2016 · 14 posts · 20 votes2mo
@Drew Sygit how much are you willing to guarantee there is something in Denver or Chicago? Cause I'll take that bet. I'll guarantee you in my price range there is not anything available. However, there are things available in Pittsburgh, which is why I was looking there. I go where the opportunities are.
- 2moDrew SygitBusiness MemberProperty Manager · Royal Oak, MI · Member since 2012 · 12k+ posts · 9k+ votes
Quote from @Justin Miller:
@Drew Sygit how much are you willing to guarantee there is something in Denver or Chicago? Cause I'll take that bet. I'll guarantee you in my price range there is not anything available. However, there are things available in Pittsburgh, which is why I was looking there. I go where the opportunities are.
You didn't state a price range!
Ask/post general info, you get a general answer:)
Logical Property Management4.9460 Reviews
- Contractor · Chicago, IL · Member since 2016 · 4k+ posts · 2k+ votes2mo
Love it @Justin Miller! I had a similar situation here in Chicago.
Where I kind of bought (2) 2-units on the North side of Chicago, then South loop condo, then (2) 2-unit buildings on far South Side. Just like scattered shotgun approach of properties. One I did airbnb with and the other one I did mid-term rental like you.
I don't love it now, but I learned a lot!
Just what was your biggest learning lesson?
Quality Builders4.966 Reviews- Arvada, CO · Member since 2016 · 14 posts · 20 votes2mo
@Jonathan Klemm when did you buy all these properties? Curious of the timeline. Buildings make sense in Chicago. A duplex or a triplex sounds really good. if I could've bought a four Unit property a couple years back in Rogers Park I would have but prices have jumped, and I don't think the numbers make sense anymore.
- 2moAlex BekezaBusiness MemberLender · Los Angeles, CA · Member since 2018 · 2k+ posts · 1k+ votes
Hey @Justin Miller My advice would be to do whatever you can to underwrite the exit refi ahead of time to avoid surprises down the road. I created a tool to do that and you'll find it in the website link in my bio. Free to use, doesn't even require contact info but it will allow you to see lives rate/terms/fees by inputting the most basic metrics (FICO, Value, Rent, Taxes, Insurance).
Don't fall in love with any deals. Try to find every reason up front to kill them. Offer lower than you think feels comfortable, budget for higher rehab than your GC says, and do not lean into the absolute best comps nearby. Run your numbers using a conservative ARV. Do not deviate from the same bed/bath count and very similar square footage within a mile. Skipping these steps is where I see people get burned all the time.
As far as managing the rehab, I'm an out of state BRRRR investor too (live in CA, BRRRR in STL MO) and the biggest thing is just having a GC provide a very detailed Scope of Work during your due diligence period and then having a mutual understanding of what you expect in terms of communication along the way. I'd avoid working with a GC you found on google and stick to working with one with verified referrals from other investors. I was pretty lucky with my GC connection because he was used by my PM to do a unit turnover and I was so impressed with the quality and communication that I just started using him up front for the heavy renos start to finish. He's a fix and flipper himself too so the other mutual benefit is that I've done some hard money loans for him so it just turned into a nice business relationship over time.
Investor Property Loan5306 Reviews - 2moJimmy LieuBusiness MemberReal Estate Agent · Columbus, OH · Member since 2019 · 3k+ posts · 2k+ votes
Quote from @Justin Miller:
I own a couple local properties in Denver I long-term rent. I also have a condo in Chicago I mid-term rent when I'm not using it for the summer. But I've been wanting to buy more and never figured out how.
Recently I realized I could tap the equity in my primary residence with a HELOC and decided it was time to start investing this year in BRRRR since I want to try and do it again every year. After doing some research I've chosen Pittsburgh for the location and will drive out there in a couple of days to meet with a real estate agent and contractor to view a couple places.
I'm not sure how others get started. I just do a ton of research. But I'd love advice and suggestions as I start down this long road. Being a landlord and even a remote landlord is not new to me. Nor is the renovation process. But everything is in order to get my money out in the end so I can do it the next year or just six months later.
Welcome to BP! It sounds like you've already done a lot of the hard work before even buying your first BRRRR. Since you already have experience as a landlord and with renovations, I'd focus on making sure the refinance is baked into your numbers from day one. Be conservative with your ARV, get a lender who understands BRRRRs before you close, and build in extra time and money for surprises. I also like having at least two contractor bids on every project, even if I already have a favorite, just to keep pricing honest. Since you're investing remotely, your local team is everything, so I'd spend as much time vetting your agent, contractor, property manager, and lender as you do analyzing the deal itself. One thing I'd also recommend is not rushing the first purchase. A great first BRRRR can make the second one much easier, while a marginal deal can tie up your HELOC longer than expected. If you ever decide to compare other markets, Columbus has been worth a look for me. I moved here from Portland in 2020 and have built a portfolio of 10+ rentals because there are still neighborhoods where you can find properties in the $120K-$180K range that get close to or exceed the 1% rule, while benefiting from strong job growth, population growth, and major employers like Intel, Google, Amazon, Honda, and Nationwide. Happy to connect and answer any questions you have!
Jimmy Lieu, Red 1 Realty4.9120 Reviews - 2moArman AhmedPro MemberReal Estate Agent · Columbus Cleveland Dayton, OH · Member since 2024 · 2k+ posts · 953 votes
Quote from @Justin Miller:
I own a couple local properties in Denver I long-term rent. I also have a condo in Chicago I mid-term rent when I'm not using it for the summer. But I've been wanting to buy more and never figured out how.
Recently I realized I could tap the equity in my primary residence with a HELOC and decided it was time to start investing this year in BRRRR since I want to try and do it again every year. After doing some research I've chosen Pittsburgh for the location and will drive out there in a couple of days to meet with a real estate agent and contractor to view a couple places.
I'm not sure how others get started. I just do a ton of research. But I'd love advice and suggestions as I start down this long road. Being a landlord and even a remote landlord is not new to me. Nor is the renovation process. But everything is in order to get my money out in the end so I can do it the next year or just six months later.
It sounds like you've set yourself up well for your first BRRRR. Since you're already comfortable with rentals and renovations, the biggest focus should be buying right and being conservative with your rehab, ARV, and refinance numbers. Don't get locked into one market either. It can be worth comparing Pittsburgh with nearby Midwest markets, where many investors are finding lower acquisition costs and strong BRRRR opportunities. At the end of the day, the best deal is the one that lets you recycle your capital and repeat the process with confidence.
- Contractor · Chicago, IL · Member since 2016 · 4k+ posts · 2k+ votes2mo
Hey @Justin Miller - I started buying properties in Chicago around 2019 and then retired lol in 2024.
Having a Chicago General Contractor business helped the investment side of things, but was a lot to handle.
Buying in Rogers Park would have been a good move and still is...I think it's always a good time to buy as long as you can live with the lower short-term cash flow; the long-term appreciation will pay off in a lot of those areas,
Quality Builders4.966 Reviews
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