Skip to content
×
Try PRO Free Today!
BiggerPockets Pro offers you a comprehensive suite of tools and resources
Market and Deal Finder Tools
Deal Analysis Calculators
Property Management Software
Exclusive discounts to Home Depot, RentRedi, and more
$0
7 days free
$828/yr or $69/mo when billed monthly.
$390/yr or $32.5/mo when billed annually.
7 days free. Cancel anytime.
Already a Pro Member? Sign in here

Join Over 3 Million Real Estate Investors

Create a free BiggerPockets account to comment, participate, and connect with over 3 million real estate investors.
Use your real name
By signing up, you indicate that you agree to the BiggerPockets Terms & Conditions.
The community here is like my own little personal real estate army that I can depend upon to help me through ANY problems I come across.
Buying & Selling Real Estate
All Forum Categories
Followed Discussions
Followed Categories
Followed People
Followed Locations
Market News & Data
General Info
Real Estate Strategies
Landlording & Rental Properties
Real Estate Professionals
Financial, Tax, & Legal
Real Estate Classifieds
Reviews & Feedback

Updated about 3 years ago on . Most recent reply

User Stats

28
Posts
6
Votes
Michael Weis
6
Votes |
28
Posts

I want to BRRRR, but don't know if I can in my market.

Michael Weis
Posted

I love the idea of the BRRRR strategy, but really wonder about whether or not it can work in higher-priced markets like the one I'm in. For instance, I found a pretty distressed duplex in my market that is currently on sale for about $100K less than its ARV. Given what I know it needs without even seeing it, though (new roof, fascia repairs, animal control, new boilers, lead and asbestos remediation, oil tank removal--and that's without knowing anything about it structurally or cosmetically on the inside), I'm guessing I would have to put in roughly $100k in rehab. But I would have to offer $100k less than the asking price to make it work as a BRRR under those circumstances. In particular, there is a large garage with a second story that I could use to create another unit, which I'm sure has not been figured into the ARV I've seen online. I guess what I'm really wondering is whether or not it even makes sense to try to BRRRR in my market, as making it work requires going so far below the asking price that I can't imagine why any seller would want to accept such an offer. I'd love to hear any feedback. BTW, we love this market because we've got a major university a few blocks away, Fortune 500 employers in the area and other factors which drive constant rental demand. We've never had a problem finding great tenants and we want to find a way to continue investing there.

Most Popular Reply

User Stats

1,299
Posts
1,483
Votes
Joshua Janus
  • Realtor
  • Cleveland, OH
1,483
Votes |
1,299
Posts
Joshua Janus
  • Realtor
  • Cleveland, OH
Replied

@Michael Weis I would start to cold call and prospect owners for off market deals. That is where you are going to find properties that are <75% ARV with room for value add at the end of a BRRRR. You could either do the work or find an investor friendly realtor that puts in the daily grind to get off market properties with numbers that actually make sense.

Loading replies...