Best REI option (Turnkey Rental, BRRR, flip/sell, or?
Fairly new into the REI game (18 months). Need some advice on our next move. Little recap of our portfolio & questions below.
-Our current business model is less focused on rental cash flow and more so purchasing in an targeted transitional area of Atlanta that should have big appreciation value (+rental increase opportunity) in 5-10yrs with city amenities in the works.
-We currently have 4 sfh & 1 duplex. 3 of the 4 sfh were renovated and then we purchased and have a renter in there. The fourth was not renovated but still turnkey with no reno needed, still long term rental. Just an older home.
-The duplex one side was renovated and then they sold, yet both sides occupied & rent cash flow.
All properties were purchased with conventional loan 25% down found on FMLS. Will take us anywhere from 6-9yrs to get original down payment back to be “true cash flow”. All properties cash flowing between $100-500 monthly right now.
1. We've been reading a lot about the BRRR method and think that is our next move as we've been able to get some private funds at a 8% interest + our own cash. We also have a GC with a good track record. For simple math of our area distressed properties going for 75k-150k. Reno 25k-100k. All in cost 150-175k. ARV for a 3/2 is 215-250k. As opposed to putting down 50k on a traditional loan / renovated property we figure after a BRRR worse case we are in it for 10-30k, best case, breakeven. What about the above is bad about the BRRR I've heard it's like a cult like following. Either love it or hate it - why the hate?
2. We just started getting on wholesaler list, off market FB groups, and attending foreclosure sales at the courthouse. Those are wild, and a bit scary to trust. Thoughts?
Would love your thoughts on how to move forward with about 75k with option to get hard money / private funds.
Thanks,
Atlanta Investor.