Best BRRRR Cities in Texas - Canadian Investor

[Nam Pham]

Hi Everyone,

I'm a remote Canadian investor looking to do the BRRRR in the Texas area. Real estate in Canada is just way too expensive and impossible to get positive cash flow.

What cities would you recommend as opportune areas for BRRRR? I'm currently looking at Beaumont but open to other areas.

I'm setting up my corporate structure as we speak but would love any advice you're able to share. Has anyone seen recent success doing something similar? One area I'd love more info on is how to manage general contractors remotely. 

Appreciate any pointers you're able to share! 

[Kevin Coco-Senyszyn]

I'm curious about how you decided on Beaumont. Typically for out-of-state investors, larger markets with more stable job and housing markets tend to be less risky. Smaller local markets are harder to nail down accurate ARVs and find reliable trade labor.

Regarding managing general contractors, I've heard some horror stories from our owners who have worked with GCs they've never met. If you're going to manage a GC, make sure to meet them in person and avoid paying for the entire job upfront (typically for smaller jobs, you will pay half upfront, and half at the end). Research the licensing requirements and know the right questions to ask during the vetting process. Make sure you're working with a reputable business and double check they have insurance. It's also a good idea to have a third party, such as a realtor, visit the property to ensure the work is being done diligently and on time.

I have an excellent contact for work in North Texas. If you decide to undertake a BRRRR project here, I'd be happy to connect you with them. Alexandra Feinberg with DFW Landlord Services does incredible work and is very professional.