starting out in real estate

[Sibo Ju]

Hi all,

I am looking to buy my first property to house hack with my wife and not sure where to start. I've been looking for months now and I can't seem to get any good deals around west houston. Single family homes are flying off the shelves and not even sure if nows a good time to do a BRRR since renovation costs are going through the roof and supply chain choked (uncertain if renovations will finish on time).

Now I have been thinking about getting a more expensive, renovated property in uptown or downtown houston and airbnb it. Any advice would help!

[Deneuve Brutus]

Hi @Sibo Ju Welcome to BP and congratulations on your first post and the decision to BRRR! 🎉

It is a seller's market at the moment. The first place to start is to figure out what you are able to afford in order to ensure you don't overbid should you find the perfect home and there is a bidding war. Contact a lender either bank or credit union or mortgage broker and get pre-approved if you can. It is better than pre-qualify and you can ask for a letter of pre-approval to give with your offer to improve your odds at getting accepted. Ensure you contact a Real Estate Agent who is investor friendly, they will know the verbiage and what you are planning to do with the home. Go to virtual meetups/connect with other investors in the area, you may be able to find an off-market deal. 

BRRRR

The great thing about BRRRR is that it can take as long as you want. I've been BRRR'ing a home since 2018. David Greene calls that a Long Term BRRR. I'm pulling a Brandon Turner and coining it the "LTBRRR". I have tenants living in there, at the moment. I lived there for 2 years slowly making repairs and upgrading the basement, as I had a baby and got married during that time period. Do what you and your spouse is comfortable with as far as time period and costs. One thing I learned is that you don't want to rush or force a deal. If you and your wife are willing see out of state or other markets, it is something to think about.

AirBNB

Short-term rentals are a hot-topic, BP has an Air-Bnb calculator it is powered by AirDNA. It also has a BRRR calculator. I'd suggest paying for the PRO membership to use them. They are phenomenal. There are other websites as well and ample YouTube videos that will help you calculate your expenses if you do not want to use the BP calculator. In order to find expenses for the homes search the web for average cost of living in the Zip Code or if you know someone who lives in that neighborhood you can ask, depending on the home it may vary. You can get an insurance quotes from a company during your due diligence period. Call the utility company and ask them for the highest/average usage in the area/block/zip code. They may give out that information as well.