BRRRR ("fix and rent") in Hampton Roads

[Eric P.]

I'm curious if BRRRR ("fix & rent") works in the Virginia Beach / Norfolk / Chesapeake / Tidewater 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.

[Elizabeth O.]

I purchased a town home in zip 23452 and made it work. 99k purchase price with 20% down. HUD purchase and it only needed 5k in rehab. Rented for 1195, waited the 6 months and did a cash out refi 75%LTV.

Was able to pull out all of my money and move on to the next deal. 

It's hard to find a 3/2 around 100k with little rehab anymore in Virginia Beach but I see them pop up every once in a while.

If you have any questions, please feel free to reach out.  I have a great realtor and lender and I'm happy with my property manger. 

It can be done!