Investing out of state doing BRRRRs

[Kevin G.]

Hey everyone,

I’m diving into the world of out-of-state real estate investing and couldn’t be more excited (and maybe a little nervous). I currently live in the Bay Area, but I’ve decided to start investing in the Jackson County/MO area. Why? My sister lives in Lee’s Summit, so I’ll have family nearby to help navigate the local scene. I am not preticuarly brand new to real estate as I've done 1 house flip before and 1 brrrr here locally to me.

To begin, I'm aiming to tackle two single-family BRRRR projects in the Jackson County, MO area. My main goals with these initial projects are:

1. Gaining valuable insights into the local market.

2. Getting hands-on experience with out-of-state investing, particularly when it comes to remodels and managing from afar.

3. Testing the entire BRRRR process to see if it's the right strategy for me long-term.

If all goes well, I’d love to scale up and explore multi-family projects. However, if single-family homes prove financially viable, I’m happy to continue building in that niche.

Since these homes and projects are significantly cheaper than my market, the risk is relatively lower for me and can do at least two at a time.

The Challenge

One of the biggest hurdles is finding reliable contractors and subcontractors in the area. My brother-in-law, who owns a landscaping company in Lee’s Summit, works with a lot of local builders and has been a huge help. While most of his experience is with new construction rather than remodels, he’s already given me a few pointers and is looking into potential referrals for me. I am wondering if anyone invests in this area can provide me with some referrals?

If you’ve worked with trustworthy contractors or subcontractors in the Jackson County/MO area (especially those familiar with investment properties), I’d love your recommendations. Bonus points if they’re used to working with investors or can help keep costs in check while maintaining quality.

Cheers,

Kevin

[Jonathan Greene]

The BRRRR strategy was great a couple of years ago, but it's much harder to do now because of the high interest rates. It can be done in smaller towns, but the margins are still very tight. All of the BRRRR propaganda was from when rates were very low. Where do you plan to find your deals? Unless you are finding off-market opportunities direct to seller, I can't imagine the deals working on BRRRR.