Long-Distance Real Estate Investing - BRRR Analysis Paralysis

[Reese C.]

Hello Everyone,

I am currently in the Denver Metro area and have one property that I am renting out and a primary residence. I just read David Greene's book Long-Distance Real Estate Investing. The book is great and I am motivated to implement the strategies that are taught to BRRR properties. But there is one problem with the book (or me)...

The problem is that it opens the whole country up as a possibility. The hurdle now is determining which markets would be good ones to target. I would like to target 3 and here is my shortlist:

Kansas City, KS

Orlando, FL

Raleigh-Durham, NC

Grand Rapids, MI

Des Moines, IA

With about 40K to invest, are there any on this list you would recommend, remove or add? 

Thanks

[Jay Hinrichs]

Originally posted by @Caleb Heimsoth:

Reese C. I live in Raleigh. You can reach out to me if you want some basic understanding of the market here.

I also invest long distance (Cleveland and Memphis) and I would not do BRRR long distance like Jay Hinrichs says.

The big dirty secret on BP is everyone talks about returns but they don’t talk about risk. You have to adjust your return expectations to manage the risk.

Could I go buy a whole city block in a war zone in Detroit? Sure! But why would I? The risk doesn’t justify the return potential.

I'm not sure what returns you want but having bought basic (cosmetic rehab) or totally turnkey properties so far my total return (cash flow, appreciation, loan paydown) is greater than 15 percent and my IRR is greater than 20.

Great returns much less risk then what you’re wanting to do. Just food for thought.

one thing to remember the author of that book is a high producing real estate broker with probably a lot of wherewithal.. and a ton of experience.. so yes what he talks about can happen.. but is it appropriate to advise those who have never done it and or on much tighter budgets and no real experience.. in my ever it to be humble opinion NO.. HIGHLY risky..  there is thread after thread on BP of folks who have tried this that lost all their money..  A lot of things have to go right.. and rehab contractors on lower end properties are as risky a person or business you can possibly align yourself with..  And a top producing agent in a market is NO way going to work with one off 50k buyer and marshal their whole rehab.. those folks would go broke.. they will sell you the home and wish you a good day.. :)