Atlanta BRRRR strategy

[Bentley Denman]

hello, my name is Bentley, and I am just starting out in the Atlanta market and was wondering what kind of techniques y'all have been successfully applying into this growing area. Im trying to implement the BRRRR strategy. Am I wasting my time or just looking in all the wrong places?

[Brenden Mitchum]

Hey @Bentley Denman, welcome to the BP community!

@Marc Brenner is absolutely correct. The only way you're going to find a great BRRRR in such a hot market is to look in the Atlanta suburbs and create your own lead generation funnel. Market prices are simply too inflated at the moment for a decent enough spread on a BRRRR.

Another thing to keep in mind is your timing here. Just because many have found success from BRRRRs in the past decade of expansion does not mean it is an appropriate strategy now. With so much uncertainty, no one has any clue what will happen to prices in the next year or even the next few months. Since the BRRRR strategy relies so heavily on that third "R," you're taking on a huge amount of risk by dumping your money or, even worse, other people's money into a property. It will take a couple of months for the rehab, depending how much is needed. Then you'll likely need a 6 month seasoning period. So, that puts you at 8 months from now. No one has the slightest clue what the housing market or lending will look like in 8 months.

The answer probably isn't to just give up and go sit on the couch until everything calms down, but you definitely want to factor this added risk into your analysis. Maybe add a decrease in ARV assumption to all your calculations? Or perhaps increase your ROI criteria? Anything but blindly following what has worked for the past decade would be a good call.

And please, feel free to message me anytime if you have questions or just want to chat!