Is BRRRR Possible Through MLS??

[Dan W.]

Is it possible to find deals through MLS that are good enough to do the BRRRR method right now? Clearly, it's a seller's market.

I am talking the Baltimore and surrounding area. I have looked at dozens of properties but none seem to be a deal capable of doing BRRRR.

I know this is broad so let me explain: I am looking at SFR (house or townhouse) in the Baltimore County, Anne Arundel County area under the $100k range. I'm hoping to get into rentals that way and this will allow me to with current capital. I understand after refinance in approx 12 months I may have some skin in the game but I'm hoping to pull as much as possible and start the process again.

Looking for help. My first BRRRR deal so take it easy on me.

[Tom Shallcross]

@Dan W. - In my experience it is extremely difficult to find deals with enough meet on the bones, especially in desirable areas, but it is possible.  Increase your leadflow by teaming up with wholesalers and investing in your own marketing strategies.

I said it's possible so I'll give you an example of one I recently did off the MLS in Chicago that is similar to your <100k. Purchased a SFH for 48k - https://www.redfin.com/IL/Chicago/10157-S-Crandon-Ave-60617/home/13084421 (These are the before pics).   My all-in expenses were 28k so I'm all-in for 76k.  It just appraised for 97k so I'm going to get roughly 73k of my 76k back (well, more like 70k after incorporating loan fees). 

Even if the BRRRR numbers didn't work out so nicely and let's say it appraised low so you had to leave 10-20k in there, this is now rented out at 1400/M. Cash-on-cash would still be very attractive calculating the monthly cashflow vs the money in the deal. Obviously pulling all/most the capital back out is gravy on top.

Some blanket assumptions on when BRRRR works for me scrounging the MLS (I only have 2 such situations under my belt and everything else has been direct or wholesaler so I'm by no means an expert):

Act fast - this went under contract day 1 

Cash close no contingency and high earnest money - they knew I was serious and would close  

In general the property will need a good amount of work/risk to offer enough meat on the bone.