Hello From Northern California

[Ed Morrison]

Hi Everyone:

My name is Ed. My wife and I own 3 properties, 2 SFR's (we manage our self) and the home we live in. I came across David Greene's BRRR book on Amazon a couple of weeks ago, bought and read it and I am currently reading his Long Distance Real Estate Investing.

Our previous investment strategy was to buy, hold and pay off our two rentals. Now I am trying to figure out the best way to leverage them for more rentals. Currently due to the payoff strategy we have implemented we owe less than $30k on a 2Bd 2Bth home and we owe $150k on a 3Bd 2.5Bth home. The 2Bd house has an approximate value of $290k and the 3Bd has an approximate value of $350k.

We are looking to include out of state properties in our portfolio. We have not decided where to concentrate our efforts, that said we have a few potential possibilities, Houston Tx., Kansas City Mo., Detroit Mi. and we are looking to include Florida locations as possibilities also. I am currently thinking we would refinance the 3Bd home to fund our out of state expansion and continue to pay off the 2Bd house until we see how we can make BRRR work for us.

I am not sure if it would be best to start with a SFR or MFR as our first BRRR. Our ultimate goal is increasing our networth with significant cash flow. We both have decent paying careers so cash flow is secondary for now.

If anyone one has suggestions about anything I have said above, I would appreciate hearing from you. Sorry for the long post.

Ed

[Blake Edwards]

@Ed Morrison - Welcome to BP! Congrats on getting the BRRRR book and diving in. We (The David Greene Team) are in your neck of the woods. We hold meetups all the time and would love for you to check em out.

As far as OOS investing, if cash flow is your main goal there are a ton of opportunities out there in not only those sates that you mentioned, but a plethora of other areas as well.  You will get cash flow and if you factor in property management with you numbers, can be rather hands-off.

One thing you won't get in the OOS markets is appreciation like you do here in the Bay Area.  Refinancing your home is a big step, and if you are going to do that, I would want to make sure it's worth my while and put the refinanced capital into an appreciating asset that you would eventually be able to refinance, and rinse and repeat.

There are a ton of different strategies out there and if straightforward cash flow on an "affordable" property is it, I would look into Kansas City.  Even though the secret is out so to speak there, you still can find "cheap" properties that cash flow.

Good luck and let us know how it goes!