All Forum Posts by: Hadar Giladi

@Hadar Giladi New development can be rewarding but growing markets do not necessarily make the construction project pencil TODAY, and that's what's needed to get a project approved and funded by a lender. With where construction costs are today you will be best served focusing on established markets with higher pricing. It's where it's easiest to absorb the costs. Furthermore, development is risky, so best to not combine speculiation with new development on your first go around. 

Hi Hadar, I would personally recommend looking into Columbus OH for doing the BRRRR strategy. I have completed quite a lot of BRRRRs myself as an investor here. You can still find positive cash flow deals here that hit the 1% rule and have lots of potential for appreciation. With so many major companies developing out here like Intel, Nationwide Hospital, Meta, Amazon, etc., the population and job market are both growing rapidly - overall great macroeconomics. Happy to connect and answer any questions you may have.

Hey Hadar, I would recommend that you explore the Ohio area. Cleveland offers a mix of affordable housing options and a solid rental market. Columbus is another city to consider. It's strong job market, growing population and a mix of affordable and appreciating properties makes it a favorable area to invest in. 

The main issue with BRRRR is tight inventory. If you have only 1 month supply everything sells and sellers don't have to offer much discount.

I have been BRRRR-ing for over a decade in Milwaukee and it's not like deals were always easy to find, but once a house has been sitting on the market for 6 months, sellers get more motivated to discuss a less than ideal priced offer. In this market, they don't have to.

However, we have now also an element that makes our job much easier as investors: appreciation. It used to take me 6 months to complete a full rehab and have a tenant moved in. Today, if you wait a little longer, appreciation alone has picked up almost a third of what we were aiming to force through a high-effort rehab. Now it's just sit and wait.

Don't give up your home-field advantage, it will cost you more than you think.

A lot of OOS investors are having great success with BRRRRs here in Ohio. I like Columbus because of the appreciation, but you may have to leave some money in your deal because the city is growing so fast.

Cleveland is another market where BRRRRs work. You just need to make sure you hire out the right contractors, as there are a lot of unreliable GCs there. 

I'd look around the edges of DFW.....draw a big circle around the DFW area and then invest just on the outside of it.

I think Waco is pretty tough right now.  Tons of rentals it seems.  Prices look attractive, but lots of investors there.

Decatur is probably a place to look, Krum, Gainesville, Sherman Denison, Midlothian, Weatherford, places that aren't off the radar, but still have good growth prospects and maybe a few demand drivers.

Hey Hadar,

Im a local agent here in Pittsburgh, and the firm that I work with focuses on distressed properties for investors, and from the numbers we have seen most of the opportunities we sell are typically 75% of the local ARV minus any repairs. If expanding out here or learning more is something you're interested in I would love to be of help to you! Feel free to reach out at any time!