Looking to do my first BRRRR

[Lance Lamberton]

I am looking to do my first RE deal. Despite its inherent risks I'm looking to do a BRRRR strategy because I do not have the capital to put down. Ive looked at a few areas and settled on Birmingham, Alabama.

Here's my ideal deal

Purchase: $60k

Closing: $2400

Rehab: $35k

Holding costs for 6 months: $8000 - estimate for interest & utilities. 

All in $105,400

ARV: 145,000 to 155,000

Here's the question(s): 

1. Does anyone have any experience in this city, and know if these numbers are possible? 

2. Are there any areas in Birmingham, Al that I should consider/ Avoid? 

3. Feel free to recommend other cities as well. 

[Andrew Fair]

In general, 60k is going to limit you and cap ARV's in those areas. A quick zillow search shows that the areas with 60k homes would not have the ARV's to support what you are looking for. I would suggest buying something 80-100k with a higher ARV.