Project Management for BRRRRs?

BRRRR - Buy, Rehab, Rent, Refinance, Repeat
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Project Management for BRRRRs?

Richard Billingsley
Investor · Member since 2023 · 73 posts · 32 votes

Hello I'm an out of state investor that would like to get into BRRRRs. The problem is I'm out of state! I was wondering if there is such a thing as a project manager or something similar that oversees everything, to include the sale, GC, walkthroughs, and lastly the handoff to the property manager. Deals primarily all in at or about 100k. Is this even a thing?

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Shiloh LundahlPro Member
Rental Property Investor · Gilbert, AZ · Member since 2016 · 3k+ posts · 4k+ votes
1w

@Richard Billingsley there are people like that but they are often called turn key providers. They find the distressed property and they fix it up and they sell it to an investor (often an out of state investor) and then they offer property management services to the investor. But they keep the equity that is created through the BRRRR process and they sell the property to the investor at market rates. They don't often pass the equity on to the investor.

I have done deals with people similarly to the set up that you are asking about but I usually do it mostly with family or friends. This is how I set it up. Let's say I find a property that is distressed and someone wants to partner with me on it. We create an LLC, we buy the property with a hard money loan, the investor then funds the down payment and the repairs, I then oversee the rehab and getting the property ready for the market. I then find a tenant buyer to sell the property to on a lease option. And then I refinance the property into a DSCR loan. I then manage the property and the investor and I will split the cash flow. But there are two more important parts of the deal that are non negotiable for me. 1) The investor funds the bank account for the property with $10,000, and 2) I get $10,000 of my portion of the profits up front. And we split the cash flow quarterly with any money that is in the account that is above $10,000. Then when the property sells the the profits are split where the investor gets $10,000 more than me in the sale because I took $10,000 of my portion of the profits upfront.

Number wise this turns out to be a more profitable strategy than a regular turnkey property. The IRR is usually between 15% and 30% for the investor over a 3-5 year period. And, in my opinion, it is better than a turnkey property for the investor because we have aligned goals. I don't get paid unless the property makes money. And we have an exit strategy. This is a combination of the BRRRR method, turnkey, and lease option.

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  • Andrew FreedBusiness Member
    Investor · Worcester, MA · Member since 2020 · 1k+ posts · 1k+ votes
    1w

    @Richard Billingsley - Perhaps partner with an investor focused agent and give him a piece of the upside if he brings the project to frution? An investor focused agent who invests themselves should have all the resources already available, be in contractors, lenders etc. One stop shop. So you give some potential upside in exchange for an easy way to oversee and manage your property? This would probably be the approach I take. Just ensure this agent owns properties themselves and have already done this strategy before. Just my two cents.

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  • Shiloh LundahlPro Member
    Rental Property Investor · Gilbert, AZ · Member since 2016 · 3k+ posts · 4k+ votes
    1w

    @Richard Billingsley there are people like that but they are often called turn key providers. They find the distressed property and they fix it up and they sell it to an investor (often an out of state investor) and then they offer property management services to the investor. But they keep the equity that is created through the BRRRR process and they sell the property to the investor at market rates. They don't often pass the equity on to the investor.

    I have done deals with people similarly to the set up that you are asking about but I usually do it mostly with family or friends. This is how I set it up. Let's say I find a property that is distressed and someone wants to partner with me on it. We create an LLC, we buy the property with a hard money loan, the investor then funds the down payment and the repairs, I then oversee the rehab and getting the property ready for the market. I then find a tenant buyer to sell the property to on a lease option. And then I refinance the property into a DSCR loan. I then manage the property and the investor and I will split the cash flow. But there are two more important parts of the deal that are non negotiable for me. 1) The investor funds the bank account for the property with $10,000, and 2) I get $10,000 of my portion of the profits up front. And we split the cash flow quarterly with any money that is in the account that is above $10,000. Then when the property sells the the profits are split where the investor gets $10,000 more than me in the sale because I took $10,000 of my portion of the profits upfront.

    Number wise this turns out to be a more profitable strategy than a regular turnkey property. The IRR is usually between 15% and 30% for the investor over a 3-5 year period. And, in my opinion, it is better than a turnkey property for the investor because we have aligned goals. I don't get paid unless the property makes money. And we have an exit strategy. This is a combination of the BRRRR method, turnkey, and lease option.

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    • Richard Billingsley
      OP
      Investor · Member since 2023 · 73 posts · 32 votes
      1w

      Thank you for sharing that. I think that is a very fair tradeoff. I just read about a lease to own. Would you say it's hard to find people that would want something like that? And what do you typically require them to do to get on that type of lease? Say they need to pay $1000 upfront that would be applied to the down payment?

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    • Shiloh LundahlPro Member
      Rental Property Investor · Gilbert, AZ · Member since 2016 · 3k+ posts · 4k+ votes
      1w

      @Richard Billingsley the way that I do lease options is I look for a tenant buyer through Facebook marketplace Zillow or I get leads from yard signs. They need to make three times a monthly rent. They can't have any evictions or felonies with them last five years and they can come in with an option fee. The option fee is usually $3900 or $4900 depending on the price point of the property. then they have three years to exercise the option and purchase the property. I connect them with the loan officer at the very beginning of the process. Tell them get ready to buy the property. it usually takes 2 to 4 weeks to find a lease option tenant.

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    • Richard Billingsley
      OP
      Investor · Member since 2023 · 73 posts · 32 votes
      1w

      That's sounds pretty cool. Man I love real estate. There is just a million ways to be successful. Have you ever worked with someone like me? Or do you just work solo?

      0Reply
  • Mark UpdegraffBusiness Member
    Real Estate Broker · Rochester, NY · Member since 2010 · 1k+ posts · 685 votes
    1w

    Yes, this exists, but at a $100K all-in basis I’d watch the economics pretty closely.

    What you’re describing is basically owner-side project management from acquisition through stabilization. I own a brokerage, construction company and property management company, so we’ve built those handoffs under one roof, but I wouldn’t assume that’s common.

    More important than the title is defining the scope: acquisition diligence, written rehab budget, contractor selection, draw/change-order authority, weekly photos, punch list, lease-up and PM handoff.

    I’d also be careful about giving one person unlimited discretion over the money and the work without a reporting process.

    At your price point, another 10% layer can kill a deal pretty quickly. I’d rather find a local investor/operator who already has the pieces than hire another middleman whose only job is coordinating the other middlemen.

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  • Michael Eskenasy
    Investor · Pacific Northwest · Member since 2026 · 511 posts · 288 votes
    1w

    Yes — it’s a thing. What you’re describing is basically a local owner’s rep / project manager who acts as your eyes and operating layer on the ground.

    I’d be careful about making one person responsible for everything, though. Acquisition, construction oversight, draw verification, inspections, leasing, and property management all have different incentives. The better structure is one accountable local operator coordinating the process, with the GC and property manager still independently responsible for their lanes.

    At ~$100k acquisitions, the bigger issue is economics: you need a repeatable system because a heavy PM fee can eat a small BRRRR alive. I’d want standardized scopes, milestone photos/video, independent draw checks, budget/change-order controls, and a defined handoff before doing this remotely at scale.

    Richard, if the goal is to build a repeatable out-of-state pipeline rather than babysit one property at a time, reach out. We’re building a network around exactly these kinds of local operator relationships, and I’d be interested in comparing notes on the markets you’re targeting.

    1Reply
    • Richard Billingsley
      OP
      Investor · Member since 2023 · 73 posts · 32 votes
      1w

      Thank you for the advice. I sent you a request, maybe we can talk more?

      0Reply
  • Chris SeveneyBusiness Member
    Moderator
    Investor · VA · Member since 2015 · 21k+ posts · 19k+ votes
    1w

    Yes absolutely. Or partner with an investor. What locations are you looking at?

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    • Richard Billingsley
      OP
      Investor · Member since 2023 · 73 posts · 32 votes
      1w

      I'm really open to most places. Right now, Oklahoma, Alabama, Ohio, and Louisiana are to name a few.

      0Reply
  • Drew SygitBusiness Member
    Property Manager · Royal Oak, MI · Member since 2012 · 12k+ posts · 9k+ votes
    1w

    We call these BRRR Turnkeys instead of "standard" turnkeys.

    Challenge is making sure you have the proper expectations with $100k rentals & corresponding tenants.

    Read copy & paste info below:

    How much do you know about Property Classes?

    Recommend you spend some time learning about them, so you don’t mistakenly buy a property that will NEVER meet your expectations!

    A common issue, so Copy & Paste info below:

    You’re ALWAYS better off investing locally, where it’s easier to:

    ·         Learn the market

    ·         Network to find deals

    ·         Network to find contractors

    ·         Be more hands-on

    ·         Driveby property to keep tabs on it

    ·         Network to find a decent Property Management Company (PMC)

    Next best location is somewhere else you lived, where you have an existing network of family & friends to help you as accomplish the above list as needed.

    If you invest OOS, your biggest challenge won't be finding properties to meet your goals on paper, it’ll be successfully building a knowledgeable & trustworthy local team.

    The biggest mistake we see OOS investors making in our market, over and over again, is not fully understanding Neighborhood/Property/Tenant Classes and how they impact your probability of success!

    They all run their ROI numbers assuming Class A results – when buying Class B, C & even D rentals.

    Then they’re shocked when their performance expectations aren't met😞

    If you choose to invest OOS, and have little to no landlord experience, we highly recommend targeting Class B Neighborhoods/Properties/Tenants. If you target Class C, you better be prepared emotionally & financially for plenty of challenges.

    You can find Class B properties in the Midwest to BRRRR, but it will take more digging and YOU will need to understand how to analyze & identify them - because a lot of agents, wholesalers, PMCs, etc. will try to sell you Class C or D misrepresented as Class B:

    ·         Many of them don't know/care what Class the properties are, so they're incompetent.

    ·         Others know exactly what they are doing, so should be labeled as crooks!
    EITHER WAY YOU LOSE!

    Why is Property Class so important for investors to understand and apply in their investing strategies?

    Because the Property Class dictates the Class of the tenant pool that the property will attract.

    The Tenant Class greatly impacts rental income stability and property maintenance/damage by tenants.

    Both Property Class and Tenant Class will affect what type of contractors, handymen and property management companies you should target and be willing to deal with a property.

    The Property Class will also impact the maintenance & renovations you do to, “Maintain to the Neighborhood/Market”.

    Why is that important?

    Well, if you buy & renovate a property in Class D area to Class A standards, what Tenant Class will actually rent it?

    Or, if you put several Class D tenants in a Class A four-plex, what do you think will happen to the property?

    What do you think will happen if you rehab a Class D rental to Class A standards?

    So, if you fail to apply the correct assumptions to a property, your expectations won’t be met, and it may even be a financial disaster.

    We use the following to rank Property Classes, in order of importance:

    • Property Tenant Pool: closely linked to location, but not always.

    • Property Location: closely linked to tenant pool, but not always.

    • Property Condition & Amenities: it’s important to, “Maintain to the Neighborhood/Market.”

    Key metrics for each Property Class:

    Class A Properties:
    Tenant Pool: Majority of FICO scores 680+, no convictions/evictions in last 7 years.
    Tenant Default: 0-5% probability of eviction or early lease termination.
    Section 8: Class A rents are too high and won’t be approved.
    Vacancies: 5-10%, depending on market conditions.
    Cashflow vs Appreciation: Typically, 3-5 years for positive cashflow, but you get highest relative rent & value appreciation.

    Class B Properties:
    Tenant Pool: Majority of FICO scores 620-680, some blemishes, no convictions/evictions in last 5 years.
    Tenant Default    : 5-10% probability of eviction or early lease termination.
    Vacancies    : 10-15%, depending on market conditions.
    Cashflow vs Appreciation: Typically, 1-3 years for positive cashflow, balanced amounts of relative rent & value appreciation.
    Section 8: Class B rents are usually too high for the Section 8 program.

    Class C Properties:
    Tenant Pool: Majority of FICO scores 560-620, many blemishes, but should have no convictions/evictions in last 3 years. Verifying recent 2-years of rental history very important! Same for 2-years of job/income stability.
    Tenant Default: 10-20% probability of eviction or early lease termination.
    Section 8: Class C rents usually meet program requirements, proper screening still recommended.
    Vacancies: 10-20%, depending on market conditions and tenant screening.
    Cashflow vs Appreciation: Should cashflow immediately, at the lower end of relative rent & value appreciation.

    Class D Properties:
    Tenant Pool: Majority of FICO scores under 560, little to no good tradelines, lots of collections & chargeoffs, but should have no convictions/evictions in last 12 months. Verifying last 2-years of rental history and income/employment extremely important to find the “best of the worst”.
    Tenant Default: 20-30% probability of eviction or early lease termination.
    Section 8: Class D rents meet program requirements, often challenges to pass Section 8 inspection.
    Vacancies: 20%+, depending on market conditions and tenant screening.
    Cashflow vs Appreciation: Typically, all cashflow with little, maybe even negative, relative rent & value appreciation.

    Where did we get our FICO credit score information from?

    Check out this chart:

    FICO Score

    Pct of Population

    Default Probability

    800 or more

    13.00%

    1.00%

    750-799

    27.00%

    1.00%

    700-749

    18.00%

    4.40%

    650-699

    15.00%

    8.90%

    600-649

    12.00%

    15.80%

    550-599

    8.00%

    22.50%

    500-549

    5.00%

    28.40%

    Less than 499

    2.00%

    41.00%

    Make sure you understand the Class of properties you are looking at and the corresponding results to expect.

    For example, Metro Detroit has 132 cities and the City of Detroit 183 Neighborhoods, which we’re analyzing and classifying to make better investing decisions.

    Horror Stories from those that did NOT Understand What they were Buying:

    [email protected]248-209-6824
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  • Sruly Goldschmied
    Lender · United States · Member since 2026 · 16 posts · 4 votes
    1w

    It exists but at $100k all in the fee eats a lot of the deal. Whoever you use, make them send dated photos and videos before every draw goes out. Thats what saves out of state guys

    0Reply
  • Divin KanyamaBusiness Member
    Accountant · Seattle, WA · Member since 2025 · 149 posts · 42 votes
    1w

    Yes, this is absolutely a thing, @Richard Billingsley. Depending on the market, the role may be called an owner's representative, construction manager, or turnkey BRRRR operator. They can coordinate due diligence, the GC, inspections, draw approvals, walkthroughs, and the handoff to property management—but I would keep acquisition and final approval under your control.

    For a roughly $100K all-in budget, I would start researching lower-cost Midwest markets such as Cleveland, Toledo, Dayton, or parts of Detroit, plus selected areas around Birmingham or Pittsburgh. These markets can offer older housing stock, rental demand, and value-add opportunities, but the neighborhood matters more than the city name. Confirm achievable rent, recent renovated sales, property taxes, insurance, crime, vacancy, and the depth of the local contractor and property-management network before committing.

    At roughly $100K all-in, fees can quickly hurt the numbers, so make sure the deal still works after management fees, contingency, financing costs, and refinance risk. Use separate contracts, milestone-based payments, lien waivers, photo or video updates, independent inspections, and references from completed projects. The right local team can make an out-of-state BRRRR work, but strong systems and oversight matter more than distance. Best of luck!

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  • Alfath AhmedBusiness Member
    Real Estate Agent · Columbus, OH · Member since 2022 · 1k+ posts · 1k+ votes
    1w

    Good first step on getting started @Richard Billingsley

    I work with some good GCs here in Columbus that have an on-site project manager and they are very affordable. I own 30+ rental units here and get a lot of my work done through them. They just finished my latest 4 unit cosmetic turn.

    Happy to connect you if you are open to investing in Columbus.

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    • Richard Billingsley
      OP
      Investor · Member since 2023 · 73 posts · 32 votes
      1w

      Hey Alfath. I was just working with your brother or cousin Arman. I am interested in Columbus. After I wrap up this next deal I plan on looking back over there.

      0Reply
  • Richard Billingsley
    OP
    Investor · Member since 2023 · 73 posts · 32 votes
    1w
    0Reply
  • Danny Gonzalez
    Real Estate Broker · Member since 2024 · 125 posts · 60 votes
    1w

    @Richard Billingsley Yes, that role exists. At ~$100K all-in the fee math is the real constraint. Another coordination layer can wipe the recycle if ARV comps are soft or the refi doesn't actually pay you back. Better than one person owning every incentive is a local operator with written scopes, photo/video draw checks, and a clean handoff to PM. Alabama can work at that price if you stay out of foundation/HVAC traps and underwrite after 8-10% PM + reserves. Which market are you walking first, and is the goal pull capital out on refi or park it for cash flow?

    0Reply
  • Kate Sanchez
    Member since 2025 · 240 posts · 97 votes
    1w

    @Richard Billingsley Yes, this definitely exists, often called an Owner's Rep or BRRRR Coordinator. However, at a $100k all-in budget, hiring a dedicated third-party manager for everything can eat up your margins.

    1Reply
  • Kate Sanchez
    Member since 2025 · 240 posts · 97 votes
    1w

    @Richard Billingsley  Wishing you the best of luck with your first out-of-state deal!

    1Reply
  • Marcus Auerbach
    Investor · Milwaukee - Mequon, WI · Member since 2010 · 5k+ posts · 7k+ votes
    1w

    Yeah, it's called a great agent. You are already paying a GC to coordinate the subs and PM to manage tenants. Your agent should oversee the sale, walkthrough and can probably also handle the handover to the PM.

    If you find an agent who also does BRRRRs, they may be willing to be the GC for a fee. But be mindful: a healthy GC normally should have a 60% markup on top of the cost of the subs. That's according to an article in the Remodel magazine - investors can't afford that.

    1Reply
  • Marcus Auerbach
    Investor · Milwaukee - Mequon, WI · Member since 2010 · 5k+ posts · 7k+ votes
    1w

    I question if BRRRRR plus OOS is financially feasible in 2026. Ten years ago when David Greene wrote his book, it was barley feasible. Then low interest rates compensated for a while. That's gone: its close to 8% now for investors.

    Pick one or the other. If you are OOS the first principle is to limit the amount of interactions you have to do, because every interaction comes with a operational overhead and an opportunity for failure. In other words, but something that is move in ready. Carpet and paint are hard enough.

    If you want to do BRRRRR, keep it local. I have done BRRRR for almost 15 years and have gone away from it; the last 3 years I have only bought properties in good condition. The market is so hot in Milwaukee, that you are not getting enough of a discount to make up for the condition. Might as well buy move-in-ready, rent it the day after closing and save the 6 months holding cost. Appreciation has created more equity more for me in the last 3 years than BRRRR could have ever done - without any work.

    1Reply
  • James Wise
    Real Estate Broker · Cleveland Dayton Cincinnati Toledo Columbus & Akron, OH · Member since 2013 · 30k+ posts · 20k+ votes
    1w

    We handle this for investors in the Cleveland market. What you need to do is find a property manager that also does acquisitions, sales and general contracting in house. They are rare, not even 1 in every market, but they are out there.

    1Reply
  • Daniel Vera
    Specialist · Cincinnati, OH · Member since 2026 · 15 posts · 4 votes
    6d

    Hey Richard! GREAT QUESTION! I highly recommend you find somone in whatever state you decide that is your go to eyes on the field. Totally seperate from your pm. Real estate experience is important. 

    Your exactly right it's important to have someone following up on these task making sure they actually got done and that your not just being told they are.

    Documentation beats conversation. Photo and video documentation follow up on whatever task you need is not too much to ask for. As someone who has worked for a PM as a maintenance coordinator and more and in real estaste for 6 years I think you need somone who sees around corners and is questioning everything and not just trying to smile and nod in your face and move on to the next thing. 

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