I'm Just starting out. Experienced BRRR'er.

[Azu Lee]

Hi Everyone, 

I'm just starting out and reading lots of real-estate books/podcasts/courses (or anything that I can get my hands on) to really be financially free.

The issue that I have is that since I'm just starting, I don't have any experience nor connection. I am really into BRRRR method, but it seems like Seattle's home prices are too high to be having any cash-flow from this method. The flipping also seems like a bad choice since the home prices are not rising at a fast rate. There are so many more questions so I will lay them out here, but ultimately I would like to get any advice for the people that already done this before and getting over the initial hump.

1. Is BRRRR method right way to go given current market conditions?

2. If anyone who has experience could spare time to chat about their experience in BRRRR in these market(virtually or any Seattle area)

3. Any tips on finding contractor estimates before buying the property

4. Initial cost to start out? (how much should I save before starting the flip/BRRRR)

5. Knowing what to look for in a fixer-upper houses calculate cost of repair and ARV exactly (or closest to real numbers)

5. Any other tips for newbies like me?

[James Dainard]

Quote from @Azu Lee:

Hi Everyone, 

I'm just starting out and reading lots of real-estate books/podcasts/courses (or anything that I can get my hands on) to really be financially free.

The issue that I have is that since I'm just starting, I don't have any experience nor connection. I am really into BRRRR method, but it seems like Seattle's home prices are too high to be having any cash-flow from this method. The flipping also seems like a bad choice since the home prices are not rising at a fast rate. There are so many more questions so I will lay them out here, but ultimately I would like to get any advice for the people that already done this before and getting over the initial hump.

1. Is BRRRR method right way to go given current market conditions?

2. If anyone who has experience could spare time to chat about their experience in BRRRR in these market(virtually or any Seattle area)

3. Any tips on finding contractor estimates before buying the property

4. Initial cost to start out? (how much should I save before starting the flip/BRRRR)

5. Knowing what to look for in a fixer-upper houses calculate cost of repair and ARV exactly (or closest to real numbers)

5. Any other tips for newbies like me?

 Hey Azu,

Great job on doing what you can to educate yourself!

BRRRR is great for building equity fast but you have to make sure you're making the right purchase with enough value add potential. This typically costs a bit more since you need to be able to fund the house and the renovations at the same time either with cash or with hard money.

Come check out my market update, the link to register should be posted soon. We'll talk about this stuff in depth.

If you have contractors you've worked with in the past you can have them walk the site before you buy something. Our team has budget sheets for our clients to show them the breakdown of what a budget would be for a project.

If you're looking to maximize your investments while starting out you might consider using a Down Payment Assistance loan through the Washington State Housing Finance Commission. They offer a range of programs that can help you cover your down payment (0% interest 0 payments over the life of the loan as a second) and you can keep your cash on hand for renovations. The program requires a course which our office teaches. There are income and credit limits you can check out on their website.

You're always looking at comps. What does the data tell you to do to a house? Then you have to find the material and install rates for each of the line items that needs to be done on a house.

Reach out to some teams in your area to see who can help you with this process, you're not the first person to go through this and the right people will help you make leaps and bounds towards your goals.

Feel free to DM with any specific questions and best of luck!