BRRRR team and deals

Kansas City, Missouri
BRRRR - Buy, Rehab, Rent, Refinance, Repeat
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BRRRR team and deals

Chuka Ok
Member since 2025 · 13 posts · 13 votes

Hi everyone,

I’m currently investing in MS using a BRRRR + Section 8/Housing Choice Voucher strategy, and I’m looking to expand into another market so I have more opportunities to find deals that actually work.

Right now I’m considering Indiana and Missouri.

For investors actively buying in either state:

• Which state would you choose for BRRRR/rental investing - Indiana or Missouri - and why?
• Which cities or neighborhoods are you currently buying in?
• What are you typically seeing for purchase price, rehab, ARV, rent, and property taxes?
• How difficult is it to find properties where you can refinance and recover most of your original capital?
• How strong is the Section 8/HCV rental demand in your market?
• Any cities or neighborhoods you would avoid?

One challenge for me is that I’m an out-of-state investor, so having a reliable local team is extremely important.

I’d also really appreciate referrals for people you have personally worked with and trust, including:

• Investor-friendly wholesalers who consistently bring legitimate off-market deals
• Reliable, reasonably priced contractors/rehab crews
• Property managers experienced with Section 8/Housing Choice Voucher tenants
• Property managers familiar with the local housing authority and HCV inspection process

• Lenders familiar with BRRRR/refinance deals

I’m especially interested in referrals based on your own experience rather than someone simply promoting their own company.

If you invest in Indianapolis, Fort Wayne, South Bend, Kansas City, St. Louis, or other Indiana/Missouri markets, I’d love to hear what has worked for you.

Thanks!

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  • Caleb Brown
    Real Estate Agent · Kansas City · Member since 2018 · 4k+ posts · 3k+ votes
    4w

    Happy to chat and dive in on Kansas City

    0Reply
  • Andrew PostellPro Member
    Lender · Fort Worth, TX · Member since 2016 · 8k+ posts · 6k+ votes
    2w

    @Chuka Ok I have been investing in real estate for 25+ years. 15 of those years, I invested out of state. As a 15 year, out-of-state investor my recommendation is to ALWAYS choose whatever city you have the most trustworthy contacts in.  Keep in mind that you may never see your asset.  That's an ENOURMOUS amount of trust/money to put into a stranger's hands.  What I mean here is that if you know someone in "X city"...but that city may not have as good as numbers as this "other" city...then stick with the city where you know people.  One wrong move, one wrong contractor, one wrong vendor…will erase any "benefit" one city has over another.  Your network is the most important piece for any potential returns when you invest out of state.


    So, what you are asking about above are good questions. However, I can't tell what city you are based in. So, if you are based in MS...I would recommend re-examining the market again. If you are ALREADY investing out of state, do everything you can to get someone that you really trust and like there. It might be a good idea to speak with property managers first since they have to have all the contractors. I would also hang out in some Facebook Real Estate groups in those markets. Post and speak to the people who are already there. Wholesalers usually hang out in those groups too.


    Hope all of that makes sense.

    0Reply
  • Jimmy LieuBusiness Member
    Real Estate Agent · Columbus, OH · Member since 2019 · 3k+ posts · 2k+ votes
    2w

    Welcome, Chuka, and thanks for laying out your strategy so clearly. Since you already run BRRRR with vouchers in Mississippi, you know the housing authority side better than most.

    One thing I'd add to the team advice above: before trusting any referral, ask for the last two or three deals that crew or manager did for out-of-state owners, and call those owners yourself. Then start with one small project and watch how draws, photos and change orders get handled. For voucher units, ask a manager how many units passed inspection in the last year and how long lease approval takes, since those vacancy days can eat into your refinance math.

    In my experience, Columbus is another market investors compare, mainly for cash-flowing deals in B- and C+ areas, though I'd run your own numbers before leaning on that.

    If it's useful, connect with me and we can trade notes as you narrow it down.

    [email protected]614-300-7535
    Jimmy Lieu, Red 1 Realty4.9122 Reviews
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  • Drew SygitBusiness Member
    Property Manager · Royal Oak, MI · Member since 2012 · 13k+ posts · 9k+ votes
    2w

    What about Detroit?

    [email protected]248-209-6824
    Logical Property Management4.9469 Reviews
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  • Alfath AhmedBusiness Member
    Real Estate Agent · Columbus, OH · Member since 2022 · 1k+ posts · 1k+ votes
    2w

    @Chuka Ok

    You should choose a really good market with a ton of tech growth because of job growth. Midwest is a very safe bet. Find a good realtor that can connect you with the right lenders, contractors, property managers and most importantly deal flow. 

    Buy some turnkey deals first then go onto do value-add/brrrrr deals. That is how you build equity and net worth, but make sure they are cashflow positive and you buy them at 75% ARV.

    Your money will go a long way. Flip a couple for reserves and re-evaluate your portfolio every 6-7 years and dump the ones you don't like.

    [email protected]614-802-5698
    ReafCo | Ahmed Group 533 Reviews
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  • Alex LawsonPro Member
    Investor · Columbus GA · Member since 2021 · 24 posts · 15 votes
    2w

    I do the same in Georgia and Alabama I could help there

    0Reply
  • Noah WrightBusiness Member
    USA, Nationwide · Member since 2024 · 315 posts · 118 votes
    1w

    I'd let the refinance pick the state for you, since that's the step that decides whether your capital comes back. Most DSCR lenders have a minimum loan amount, commonly $75k to $100k. So a house that appraises at $90k in a cheaper Indy or St. Louis pocket can fall under it at 75 percent LTV, even when the rent looks great. Some lenders also use the lower of the voucher lease and the appraiser's market rent, which matters when HAP rent runs above market. Your MS voucher experience carries over, and the price point is the part that changes. A BRRRR is only as good as the loan waiting at the end of it. What ARV range are you seeing in the deals you like?

    [email protected]737-773-3717
    0Reply
  • Brandon Buhl
    Washington State · Member since 2026 · 21 posts · 3 votes
    1w

    @Chuka Ok Expanding out of Mississippi into the Midwest is a natural evolution for a Section 8 / BRRRR strategy! Both Missouri and Indiana are top-tier markets for government-backed yield, but they behave very differently when it comes to capital recovery and local housing authority dynamics.

    1. Missouri (Kansas City / St. Louis) vs. Indiana (Indianapolis / Fort Wayne)

    • Missouri (Kansas City & St. Louis): Kansas City is one of the most reliable BRRRR markets in the Midwest. Under HUD’s Small Area Fair Market Rent (SAFMR) system, 3-bedroom voucher payment standards in sub-markets like East KC, Raytown, or Ruskin range between $1,450 and $1,800+/month. St. Louis offers higher headline cap rates, but block-by-block variance is severe—a 2-block difference can drastically impact tenant stability and appraisal value.

    • Indiana (Indianapolis / Fort Wayne): Indiana offers great price-to-rent efficiency in C/B-class zip codes (3-bedroom SAFMR standards often land around $1,500–$1,800/month in working-class Indy zips). However, property tax reassessments can catch out-of-state BRRRR investors off guard. When you buy a distressed asset for $60k and rehab it to a $160k ARV, Marion County will reassess the property tax, squeezing your net DSCR cash flow post-refinance.

    2. Typical Deal Numbers (3 Bed / 1.5–2 Bath Single Family)

    • Kansas City (Working-Class Pockets): Purchase: $65k–$85k | Rehab: $35k–$50k | ARV: $140k–$165k | Rent (HCV): $1,450–$1,750 | Taxes: $1,100–$1,600/yr.

    • Indianapolis (C+/B- Pockets): Purchase: $55k–$75k | Rehab: $40k–$50k | ARV: $130k–$150k | Rent (HCV): $1,350–$1,600 | Taxes: $1,400–$2,200/yr post-reassessment.

    3. The Refinance Bottleneck: Capital Recovery

    The main challenge with BRRRR right now isn't the rehab—it's recovering 100% of your capital on the back-end DSCR refinance.

    • Appraisal Constraints: Non-bank DSCR lenders typically cap cash-out refinances at 75% Max LTV on 1–4 unit properties. In C-class or transitioning neighborhoods, appraisers often lean conservative on comps, frequently leaving 10–15% of your equity trapped.

    • Seasoning & Lease Lag: Conventional banks enforce 6-to-12-month seasoning before refinancing off a new appraised value. To pull cash faster, you'll need a No-Seasoning or 90-Day DSCR takeout program that underwrites off the stabilized appraisal and signed Housing Assistance Payment (HAP) contract rather than W-2 income.

    4. Section 8 / HCV Execution Strategy

    • Inspection Hold Times: Local Housing Authority (PHA) inspection timelines can take 2 to 6 weeks. Factor in 1–2 months of holding costs between rehab completion and the first direct deposit HAP check clearing.

    • Neighborhoods to Approach Cautiously: Avoid true D-class blocks where high turnover negates high paper cap rates. In KC, stick to areas with solid owner-occupancy ratios (like Raytown, Independence, or South KC). In Indy, stick to pockets like Warren or Decatur Townships over distressed inner-core blocks.

    Out-of-state BRRRR execution always comes down to your core four: Wholesaler, Contractor, Section 8-experienced Property Manager, and Lender.

    Are you planning to fund the initial acquisition and rehab with 100% cash, or are you leveraging short-term bridge/hard money to keep your liquid capital free for multiple deals at once?

    (Feel free to send a DM anytime if you want to run sample underwriting numbers or compare DSCR refinance terms across KC vs. Indy!)

    0Reply
  • Erik EstradaBusiness Member
    Lender · Member since 2022 · 6k+ posts · 1k+ votes
    1d

    Hey Chuka,

    This is a great post!

    Based on my personal experience with my clients I am finding that TN, SC, NC, PA, and OH are still strong states for BRRRRs. It's not 100% guaranteed that you will recoup your initial cash investment, however I do find the values have been somewhat stable in these states or the rents are strong enough to keep up with the higher rates. Disclaimer: this is my own personal observation based on the past 90 days of fundings, so this could change.

    Real Estate as you may or may not know, is market-driven. Slow or high-rate markets, may make it more difficult to find deals that pencil out. It may also take a lot of creativity to make deals work (rent by rooms, section 8, STRs, corporate housing, etc..). If you are just looking at MLS listings, you may also be stuck with low profit deals. Finding off-market, value-add deals are what is really working right now. More importantly, being an expert at your market. The most successful investors I know, concentrate in one location and understand everything (construction costs, lending, listing turnovers, buyer demand, etc..)

    [email protected]818-269-7983
    LuxePrivate Investments LLC 570 Reviews
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