A+ Rentals vs. BRRRR Strategy

[Joe Conklin]

What do you choose?

A+ rentals - Homes that achieve a solid 10-15% cash on cash return that need little to no work to rent out.

BRRRR - Properties that need a rehab to rent. Ability to have a better deal but requires more time and effort.

Does this decision differ from those who invest full time to those who don't? Has anyone made the strategy transition between A+ rentals to BRRRR or vise versa?

[Megan Hanks]

This post caught my eye as I feel like I'm struggling with this decision right now. I'm brand new to this REI game and the first (and only) property I bought was definitely A class. I completely lucked into the deal by being in the right place at the right time and talking to the person sitting next to me on an airplane who happened to be a RE agent... So fast forward to today and I want to purchase my second property and I'm having a really hard time finding a good deal. I thought after the first purchase I would just stick to that same strategy (basically turn key) as it was "easy." But of course nothing is "easy" ;) So now I've been searching for fixer uppers that I can force appreciation and still rent to stay within the 1% rule. I realize this will be a lot more work but I think the ROI is better doing the BRRRR strategy.