Is BRRRR Possible Through MLS??

Question

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 · Answer

@Dan Waskey - 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.

Solomon Morris · Answer

I was having a similar conversation with a buddy of mine last week. It's crazy to me how individuals will look at the "sticker price" of a listing and just essentially quit after running the numbers once. Real estate can be negotiated. After running the numbers at listed price, keep playing with the calculator until it fits YOUR criteria and send the offer if you think it makes sense and justifiable pending other comps. Long story short, my last deal in baltimore was off the MLS. I played with the numbers until it made sense for me, sent the offer and accepted a counter that was still "do-able" for me. I'm excited for my chance to cash out refi in June. Send in offers friends!

Tim Herman · Answer

@Dan Waskey Go to Meetup.com type in real estate and how far you want to go and go to a meeting. You will meet some wholesalers there that might meet your criteria. They are a good way to network. Last meertup I went had 2 wholesalers a hard money lender and a flipper in attendance. Good luck

Ozzy Sirimsi · Answer

Yes definitely.It is about knowing the city. I have not bought any houses through wholesaler, or yellow letter,blue letters etc..., last 4 months I closed 2 houses all through MLS, I already get my money back on one, and start working on the second one this week. If you know it, you will find it.

Joe Norman · Answer

There are plenty of deals to be found on the MLS in Baltimore, but you have to know where to look. Under $100k in the county will be tough, but doable if you're paying cash (or using a HML) and okay with a home that needs a full renovation. As @Tom Shallcross points out you have to act fast and put in strong offers in order to snatch the deals up because they generally go quick.

Dan W. · Answer

thanks @Tom Shallcross and congrats on the deal! Looks like you did alright. Like you said, may need to leave some in but pulling out as much as possible allows in on the next deal. I'm going to try some meet ups to see if I can connect with some wholesalers. I've been calling every "WE BUY HOUSES" sign I see but some seem like they are half-heartedly trying to get into the game.

Michael Noto · Answer

The answer to this of course will be very area dependent. I know in my market in CT it is still possible for sure. Are they harder to find than 5 years ago? Yes. Still achievable though if you are plugged into the market and ready to pounce when the situation presents itself.

Josh Wagner · Answer

@Dan Waskey If you need connections in the Baltimore area, I have fellow wholesaler friends who can help find you a deal.

Jason D. · Answer

@Dan Waskey I dont know Baltimore, but both of my BRRRs were purchased off the MLS. Deals are there, it's just a matter of finding them.