Looking for a market to apply BRRRR strategy

[Bryan Venable]

Hello BP community!

My wife and I are excited to start our first deal; however, I am having analysis paralysis with choosing a market. I just had many of my limited believes around needing to invest locally removed by reading Long Distance Real Estate Investing by David Greene. My next most important step is to start getting leads to analyze but I'm having trouble deciding on a market. The United States is just so BIG!

We want to use the BRRRR strategy and are looking for single family residences or small multi-family residences that will have an ARV around $100K-$150K as we have around $20K-$30K that we are willing to bring to the deal.

What cities/neighborhoods have you had success with the BRRRR strategy around that price?

I am hoping to get at least 5 locations from this discussion that I can start looking for deals in.

Thanks so much for your help,

Bryan

[Brian Levredge]

@Benjamin Bleasdale, hard to say since it depends on several variables.  First, let me state (this is my opinion only - not be confused as fact) that I don't think we'll see a market drop in price like we did during the last recession when the next one comes around the bend.  I think the problems lie in other sectors this go around-not housing.  That said, it's never a bad idea to have a healthy amount of cash on hand.  Banks love it for a number of reasons, and it can potentially help you negotiate a better deal since there are less moving parts in a cash purchase.  

That said, there are always buying opportunities in all market segments and paying all cash in what is still a historically low interest rate environment overall doesn't make the most sense to me either.  If you are smart on how you leverage your properties (term, rate, maturity, etc) you can make that same amount of money go much further and take much better advantage of inflation over the long term.