How to BRRRR from Afar

[Jonathan Roberts]

Hello all! 

I am gearing up for my second RE purchase and I would really like to engage the BRRRR strategy. I have been focusing my search for about 6 months on the Grand Rapids, MI market, however I have been running into issues finding deals that need renovation and where the numbers worked out. To make matters more complicated, I am currently working and living in the Bay Area of California - which makes it hard to jump on deals and keep a finger on the "pulse" of the market in Grand Rapids.

I am looking at a few other markets and would like all of your input! The 3 cities I have been looking at are Detroit, Cleveland, and Cincinnati. The reason I have zeroed in on these markets are below: 

- Low median home price (at least compared to the Bay Area, which may enable me to purchase distressed properties with cash) 

- A decent amount of properties in need of repair/rehab

- I have seen seller financing offered a few times in each of these markets

- Predicted growth in these areas 

Ultimately I know a big aspect of my decision-making process will be getting connected with the right people in these cities as well. I have connections in Grand Rapids, but due to how hot the market was the Agent I was working with didn't think I could find something that I could seller finance as I did the renovations. I think this was partly because I was working with a very busy and established agent, and I am also not a "big fish client" (yet!). Does anyone have suggestions on how to build a team in a new city to execute the BRRRR strategy? 

I know I would need a contractor, management company and an agent. If I stay in Michigan I will have good lending connections already with Lake Michigan Credit Union. Also, if I begin working in some of these cheaper areas I could possibly purchase the property with cash to start instead of needed to work with seller financing. 

Ultimately I would love to get a system going where I could do a deal every few months. I am currently living on +-35% of my income and putting the rest (65%) into Real Estate to build an empire as fast as possible. Now I just need a location and team to do it!  

Looking forward to your input!

Jonathan 

[Antoine Martel]

Detroit - I would be aware of the crime in this city.

Cleveland - I invest there and I love it.

Cincinnati - There is so much demand here it is will be hard to find any deals.

Team building - Start with finding a property management company that you can trust. Then use their referrals and connections for agents and contractors.

Hope this helps!