Long Distance BRRR Newbie

[Alex K.]

Hello Everyone, 

Thank you in advance to everyone for provided feedback and important lessons to my question. 

I currently live in Los Angeles CA. 

I heard the podcast episode about Long Distance BRRR investing, it struck my fancy.

My goal is to BRRR and be $70K MAX all in and have an ARV of 100k-120K that comply with the 1 percent rule or near it.

I would only like to long distance BRRR in landlord friendly states ( TX has been attracting my attention lately)

 I wanted to see what I really need to know in order to do this successfully in San Antonio. 

Is my goal doable in San Antonio ? Are there any other states that are good for these numbers? 

I would preferably like to be in C plus to B neighborhoods with strong job growth. 

Also any recommendations on how to run numbers properly for this? I need some practice analyzing deals. Any suggestions? 

Thank you, 

[Michael Guzik]

@Alex K. That's a great question my friend. To keep the answer short and sweet sure that's possible but is it likely....? No lol. The chances for someone to sell that low, and with that little of repairs needed are very slim. And on top of that you as an out of state investor getting that opportunity over someone who lives here and will have a face to the name to the seller, is very slim. The biggest problem is that you are going to be in a C/D area at best with that criteria. If you are comfortable with that, and have an amazing manager and team in place you will surely be successful. However as I'm sure you know finding a great manager especially as an out of state investor is tough, especially for a SF home. Most good manager won't want to waste their time on a single property in a not so nice area of town where they are maybe making 200 a month at best on it. 

Not trying to be negative just trying to be honest so your expectations are correctly aligned with how things will be. Don't get me wrong you can still find some good deals that are around 1%. They will be highly sought after and will probably require a lot of work. Now is that manageable as an out of state investor? Depends on your risk tolerance and the team you put together. 

My advice would be to search people here in San Antonio or other places you want to invest. Ask to pick their brains and hop on a call with them. Reach out to agents, brokers, wholesalers, flippers and/or landlords. Simply just message them and ask them questions and see what they say.  Good luck my friend! Feel free to ask me any questions or reach out I'm always here to help.