Has anyone BRRRR invested in smaller towns and communities?

[Andrew Matura]

Hey all, I am new to real estate investing and am accumulating my resources to begin investing with the BRRRR strategy in a year-year and a half time frame.

I live in Indianapolis Indiana however, my wife and I plan on moving up north (near family) around the Lafayette area. Has anyone successfully or unsuccessfully invested in smaller towns/communities? The homes in this specific area consist of older homes which on a surface level, seem good for a BRRRR strategy.

Any and all advice is appreciated, thank you all in advance!

[Joshua Davidson]

Hi @Andrew Matura,

Yes, I have done BRRRR investing in Wheeling, WV, a small city of about 25k people. We had a lot of success. Please feel free to check out my profile for more details on the investment, but we were able to spend 1 year slowly renovating the apartments as tenants moved in and out, invested heavily into leasehold improvements (long-term fixed like HVAC, water heaters, exterior paint, property drainage, etc), converted month-to-month tenants to annual leases, and raised rents to market.

In all, we were able to do a cash-out refinance after 1 year and got our entire investment, including down payment, back into our personal accounts and we still have a cash flowing property.

The beauty of smaller town and communities is that often big-time investors are not looking at them as closely and they can cash flow quite well, at the sacrifice of "natural" appreciation. With the BRRRR strategy, you can "force" the appreciation and get the benefit of both.

Please feel free to connect with me if you have any other questions, and if you need any assistance or guidance with bookkeeping, taxes, or other business strategies please let me know. Good luck!