Buying from a flipper vs. primary homeowner vs. BRRRR for OOS

[Becca F.]

To help out new investors and the many DMs I've gotten from Californians looking to buy OOS, I have many questions for our experienced investors. I bought from a primary homeowner in Indianapolis metro area who took really good care of this home (I did live in this house and rented it out when I moved back to California) and from a flipper in Indy more recently.

As far as primary homeowners, they can range from taking really good care of the house to someone who has a lot of deferred maintenance - I renovated a local property that had a lot of issues.  

With the Indy house I bought from a flipper, I have had 9 repair calls out of 12 months from the tenant. It went through a full inspection and there were minor repairs ($1500) - in retrospect, the inspector missed some things. 

I was told by contractors that a home may pass an inspection but once someone is living in it and putting daily stress on the house, things will start to malfunction. And that it takes 12 to 18 months for a house stabilize (no repair calls for 4 months so far). I didn't walk the house prior to making an offer and prior to closing. I won't ever close on another OOS property without walking it first but that involves paying for lots of flights and hotel/rental car costs if flying out there to make an offers but the $1500 to $3000 would be worth the cost to me to save on future headaches. 

Another investor said I shouldn't buy properties from flippers since you don't know how good the renovation. But if do a BRRRR from far away that's risky too, without a really good and trustworthy team in place and lots of checks and balances (security cameras, someone local to check on your property) and the ARV and refinance aspect can be challenging.

 When interviewing inspectors, what questions should we be asking? Should a sewer line scope be done on all properties or those that were built before a certain year? If we have reasonable assurance that the pipes are PVC, can we skip the sewer line scope? 

If we are checking property tax records, should we not buy a home where different LLCs (investors) have owned it and sold it every 2 to 3 years? Some investors own in their personal name so that might be hard to tell if it's primary homeowner vs. investor.

Would you recommend to new investors to not do a BRRRR unless they've done a local renovation or know a lot about construction? Thoughts about buying with a turnkey company vs. with an agent if buying move-in ready?

[Taylor Dasch]

Aha yeah I dont really trust flippers to do the repairs correctly - Even with my own flip I was tempted to cheap out on it but you always pay for it in the end! I believe that if you are well versed on a specific market, or have someone who is knowledgeable in that market, you can do a successful BRRRR in another market as the local will likely have everything you need to get set up!

Also, if you ever have anyone looking to invest in TX, let me know, I will hook you up on the referral fee! 

Also side note, I wouldnt say I am an experienced investor - I have only done 6 personal deals so far -  but definitely knowledgeable in my market! 

[Bradley Buxton]

@Becca F.

When talking to inspectors, I always ask what areas they’re not inspecting due to inaccessibility or because it’s outside their scope. Important things to check include opening and closing every cabinet, looking under sinks, pushing on doors and cabinets, and checking commonly used areas. Also, inspect the corners.

I always recommend sewer inspections for homes. Spending a couple of hundred dollars can reveal major issues. Visiting the property in person is beneficial too, as it helps you understand the flow of the house and assess how well it can be marketed later on.

For turnkey properties updated by previous owners who lived there can be a good buy. Doing a BRRRR requires trust in the contractor and the person overseeing the work. Ideally, you should be able to see progress every couple of weeks.

[Julia Lyrberg]

Walking the property before closing is definitely worth the cost to avoid bigger headaches later, especially with flipped homes where the quality of renovations can vary. For inspectors, ask about their experience with investment properties, typical issues in the area, and whether they recommend sewer scopes, especially for older homes or properties with non-PVC pipes. Checking property tax records is a good idea—frequent turnover might indicate investor issues, but it’s not a dealbreaker if everything else checks out. BRRRRs are tough for new investors, especially Out Of State, without a reliable team and renovation experience. For move-in ready properties, turnkey companies offer convenience but often come at a premium, while working with an agent might save money if you’re hands-on.