BRRRR on Lubbock, TX

[Sam Griebenow]

Hi everyone,

My name is Sam, and I'm a new investor. I've been reading up on the Buy, Rehab, Rent, Refinance, Repeat (BRRRR) method of property acquisition, and I'm considering the Lubbock market.

I don’t live locally, but my wife's family lives in Lubbock.  Also, purchasing homes cash in Lubbock is much more feasible than my local market in Colorado. 

I’ve been reading mixed reviews on the Lubbock rental market and overall housing market, but would like some current opinions. 

Property values seem to be pretty stagnant and the rental market seems to be fairly saturated due to some recent apartment complexes  

Is anyone using the BRRRR investment method in Lubbock? What kind of results are you seeing? Are you able to purchase much at $75k, rehab at $25k, appraise for ~&125k, and then rent for 1.5%?

Thank you all in advance! I’m excited to learn more!

[Joan Brown]

@Sam Griebenow, welcome! I think you can do all of the above, except houses in the $125k price range typically rent for .75 to 1% of the value. You can get 1.5 to 2.0% in the lower end housing, but that comes with its own issues.

Joan