Top Markets for BRRRR 2024

[Ryan G.]

Hi BP, 

Based in CA and gearing up for my first BRRRR (remotely). I'm in the process of choosing a market to focus on and wanted input on strong BRRRR markets right now. Looking for your suggestions.

I'm aiming for the best shot at getting as much money out of the deal so I can do several more. Specifically, eyeing entry-level markets with all in purchase + rehab between $80k to $170k.

What markets do you think I could maximize the likelihood of recouping most, if not all, of my cash? I’m in discussions with teams in Memphis and Detroit, but I'm still open to exploring other markets before making a final decision.

Thanks in advance for any suggestion and input.

[Travis Biziorek]

Hey Ryan, I'd be another vote for Detroit. 

I personally have 12-doors there and focused on the BRRRR method when I was building my portfolio. I help investors do the same thing. I actually moved from the Bay Are to Detroit Metro from 2017-2022 but I'm back in CA now.

Getting all of your cash out is fantastic, but not always doable. That said, we're still having success doing it but it's become increasingly rare. I always tell folks to expect to leave $5,000 - $10,000 in a deal.

This assume you're all in for $75,000 - $95,000. 

You're $80k - $170k range is pretty wide, and I'd be surprised if anything over ~$130k ARV actually produces net cash flow assuming 75% LTV on a refi. If you're ok running slightly negative cash flow in an effort to get your capital back, that's a different story. And it will open up a few more options for you.