BRRRR ("fix and rent") in Cleveland area

[Eric P.]

I'm curious if BRRRR ("fix & rent") works in the Cleveland metro area. Essentially, the ability to have your purchase price + rehab costs less than 70% of the ARV, so after you rehab you can find tenants & then refinance to get all of your cash back. I'm sure there must be some areas / neighborhoods where this works? Of course, the other requirement is that the rental income is enough to cover your mortgage + expenses on the back-end. So this tends to work best in middle class neighborhoods.

Are there any licensed real estate brokers / agents who can help me find such properties? Not interested in Turnkey btw - I'd rather buy pre-renovation (not post-renovation) to capture the equity myself.

[Adam Craig]

This is my strategy and can still be found easily. I am an east sider so I cannot comment on West side neighborhoods. Depends on your budget but cities like...

University Heights, Richmond Heights, Mayfield Heights, Cleveland Heights, Willoughby 

All fit the bill.

Again, this depends on the city but a typical deal for me looks like

Purchase price: 50000

Rehab - 25000

ARV - 110000

Rent: 1250

Cash out refi at 80,000 gives me a little extra cash in my pocket and the cash flow is still good.

As others have mentioned, getting a crew of contractors from a distance will be the x factor. I can do a pretty nice rehab for 25000 but it took me 5 years to find good guys cheap enough to get it done at a bargain.