HELP with BRRRR - Multi-Family in Bad? Areas

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Hi Everyone!

I am considering a strategy that is basically a combination of the best of different worlds. My partners and I are considering purchasing small multi-families by making all cash offers, fixing them up if needed, and then refinancing our money out. BRRRR for multi-families! We would be purchasing for about 60-70% of the market value.

The only foreseeable issue is that we are exploring this opportunity in areas that are not necessarily experiencing any growth. Although the houses we are seeing are 45 minutes outside of popular areas, they definitely do not present a “ugly house in a nice neighborhood” scenario.

Assuming we can find a property manager to manage these investments, I see that a lot of our risks can be mitigated by purchasing with cash for a discounted price and keeping the building slightly nicer than what is expected for the area.

Any thoughts on this strategy?

James