New Here :)

[Mic Salvador]

Hi BiggerPockets Community!

My name is Michael, and I’m excited to join BiggerPockets and dive deeper into real estate investing! I’ve been studying real estate for the past few months, reading books and absorbing as much as I can. I feel so fortunate to have found BiggerPockets, as it’s been a goldmine of information and resources.

Currently, I'm leaning towards the BRRRR strategy as my primary niche. Living in Southern California, I realize the market here is quite expensive, and I'm not sure if it's the best place to get started. I'd love to hear from experienced investors: do you think it's possible to do BRRRR in a high-cost area, or would you recommend looking out of state?

Additionally, what’s a realistic amount of capital needed to get started? I know this can vary, but any ballpark figures or advice on funding options would be helpful. I just finished Brandon Turner’s Investing in Real Estate With No Money Down and learned a ton, so I’m open to creative financing ideas too!

Thanks so much for any insights you can share. I’m eager to learn and grow in this community.

[Kerlous Tadres]

Quote from @Mic Salvador:

Hi BiggerPockets Community!

My name is Michael, and I’m excited to join BiggerPockets and dive deeper into real estate investing! I’ve been studying real estate for the past few months, reading books and absorbing as much as I can. I feel so fortunate to have found BiggerPockets, as it’s been a goldmine of information and resources.

Currently, I'm leaning towards the BRRRR strategy as my primary niche. Living in Southern California, I realize the market here is quite expensive, and I'm not sure if it's the best place to get started. I'd love to hear from experienced investors: do you think it's possible to do BRRRR in a high-cost area, or would you recommend looking out of state?

Additionally, what’s a realistic amount of capital needed to get started? I know this can vary, but any ballpark figures or advice on funding options would be helpful. I just finished Brandon Turner’s Investing in Real Estate With No Money Down and learned a ton, so I’m open to creative financing ideas too!

Thanks so much for any insights you can share. I’m eager to learn and grow in this community.

Hey Michael, 

Welcome to BP! The biggest thing you should do is figure out which market you are trying to invest in and do some heavy research in that area. From there you build your CORE 4 which includes a great realtor, contractor, property manager, and attorney. If you have not invested before and you want to get into BRRRR's, you need to find someone to partner with that has experience and see how you can provide value to them.

[Bradley Buxton]

@Mic Salvador

It is easier to start in investing in your own backyard. CA is expensive and there are reasons why people live there. Real estate there is generally not tied to a single plant or industry. It's an expensive market and to get into the market will take more capital. Maybe there is a duplex in Fontana that you could house hack to get started. Out of state is less capital intensive but will be more energy and time intensive to find contractors visit properties etc. If you do go out of state start with a location that you can drive to or fly to and from in one day, maybe AZ or NV. 

[Jay Thomas]

Hey Michael,

Welcome to the community! BRRRR can work in pricier areas, but many look out of state for better returns.Wishing you all the best.

[River Sava]

Hey Michael - Welcome to BP!

Diving into BRRRR is an awesome way to get started! While investing locally is usually the easiest route, SoCal can be challenging with high entry costs and competition (though it's definitely doable!). Some investors make it work by targeting less saturated areas nearby, but a lot of folks find more affordable markets out of state, which can make this strategy more feasible.

Capital needs can vary quite a bit depending on factors like partnering, financing options, and property types. I’d suggest researching and staying open to different markets, then narrowing down your options to start building your team. Happy to connect—feel free to reach out if you have any questions!

[Wale Lawal]

@Mic Salvador

Welcome to BP!

BRRRR is a strategy for buying and rehabbing properties to increase cash flow and deal margins. It's successful in high-cost markets like Southern California but faces challenges like high entry costs and local regulations. Out-of-state markets like Houston, Indianapolis, Cleveland, and Cincinnati offer better cash flow and lower entry costs. Capital needed depends on market and deal size.

Good luck!

[Corby Goade]

BRRRR works in every area, just the numbers are bigger. Don't let anyone tell you that X strategy doesn't work in this market or that market, all BS. There are deals everywhere, you just have to understand your market, ROI and strategy.

[James Wise]

Quote from @Mic Salvador:

Hi BiggerPockets Community!

My name is Michael, and I’m excited to join BiggerPockets and dive deeper into real estate investing! I’ve been studying real estate for the past few months, reading books and absorbing as much as I can. I feel so fortunate to have found BiggerPockets, as it’s been a goldmine of information and resources.

Currently, I'm leaning towards the BRRRR strategy as my primary niche. Living in Southern California, I realize the market here is quite expensive, and I'm not sure if it's the best place to get started. I'd love to hear from experienced investors: do you think it's possible to do BRRRR in a high-cost area, or would you recommend looking out of state?

Additionally, what’s a realistic amount of capital needed to get started? I know this can vary, but any ballpark figures or advice on funding options would be helpful. I just finished Brandon Turner’s Investing in Real Estate With No Money Down and learned a ton, so I’m open to creative financing ideas too!

Thanks so much for any insights you can share. I’m eager to learn and grow in this community.

 Welcome aboard playah

[Faris Wright]

Welcome to BiggerPockets Mic!

Although, I am also considered a new here on the BP platform, I can honestly say I've learned a lot. I also reached out and met many seasoned investors at meetups. Good luck on your real estate journey!

[Jordan D'Silva]

Welcome! Southern California can be challenging, but it's possible if you find the right deal. Many investors here look out of state to start, especially in markets with lower entry points where BRRRR can work well. As for capital, it really varies, but a realistic ballpark might be around $50-100K, depending on the market. Feel free to reach out if you ever want to chat strategies—I'd be happy to share insights!

[Min Zhang]

I have done flips and BRRRRs myself but it took up so much of my time. I don’t recommend doing value add deals if you don’t want to turn this into your full time gig. I also don’t recommend doing this if this is your first time investing out of state. Instead, I recommend starting with turnkey properties while you build your local team and establish your boots on the ground.

[Taz Zettergren]

@Mic Salvador welcome to the forums Mic. If you have the time and effort to spend I'd recommend house hacking locally to you. If you have a family and aren't comfortable doing that then BRRR'ing is a great option. I wouldn't recommend doing it out of state if you're just starting out, would definitely start by doing it local. There are so many ins and outs when buying distressed homes it's definitely something you'll want to be able to lay your hands on, at the beginning at least.

Buying turnkeys is a great option as well, there are some larger companies who offer lower interest rate options while operating in more affordable states that are landlord friendly. It all comes down to how much time and effort you're able to spend in this business. Of course you'll make more doing things yourself but it'll take more of that time and effort. Best of luck on the journey, let us know how it goes! 

[Carlos Valencia]

Hi Mic, 

The amount of capital needed will depend on the type of strategy you are trying to use. Ideally tho it good to have at least 6 months of reserves in terms of overall mortgage payments. No matter the strategy so you can be ready in case anything happens where you lose your active income or a tenant moves out without notice whatever the case may be. Lowest capital strategy I would say is the house hack method. House hacking is when you buy any 1-4 unit property as your primary and rent out the other units or rooms to help cover your mortgage. The overall goal is to get enough rents to cover your mortgage and live for free. Also upon move out you can potentially cash flow. When doing this strategy you will can put down as low as 3.5% -5% down. You live there for a year then rinse and repeat. There is more things to consider when using this strategy its best to plan ahead and begin the mortgage planning as soon as possible so if a deal comes along you will be ready to execute. 

@Albert Bui @Matthew Kwan

[Jonathan Chan]

Quote from @Mic Salvador:

Hi BiggerPockets Community!

My name is Michael, and I’m excited to join BiggerPockets and dive deeper into real estate investing! I’ve been studying real estate for the past few months, reading books and absorbing as much as I can. I feel so fortunate to have found BiggerPockets, as it’s been a goldmine of information and resources.

Currently, I'm leaning towards the BRRRR strategy as my primary niche. Living in Southern California, I realize the market here is quite expensive, and I'm not sure if it's the best place to get started. I'd love to hear from experienced investors: do you think it's possible to do BRRRR in a high-cost area, or would you recommend looking out of state?

Additionally, what’s a realistic amount of capital needed to get started? I know this can vary, but any ballpark figures or advice on funding options would be helpful. I just finished Brandon Turner’s Investing in Real Estate With No Money Down and learned a ton, so I’m open to creative financing ideas too!

Thanks so much for any insights you can share. I’m eager to learn and grow in this community.

Welcome! I was in a very similar spot when I first got started 4 years ago. I lived in Northern Virginia, which was a very expensive market. I ended up going with a market I had already been to, Huntsville, and learned to do long distance real estate investing as well as the BRRRR method. The capital needed depends on the market and type of home you're targeting. I used to hear it all the time, but never really understood that you need to get clear on what it is you're looking to do. If you want to do LTRs near military bases, then just focus on that. If you want to do MTRs near large hospitals, then just do that....figure out exactly what you want to do and the rest becomes easier. All strategies work, it just comes down to figuring out what you like and what you're good at. Good luck.

[Gladimir Lobo]

Welcome to BP!

[Jake Baker]

@Mic Salvador

This can vary widely depending on what market you in, how extensive the rehab is, and how you are financing. 

Some BRRRR Nuances:

Rehab Budget: Ensure that bids are received from multiple contractors and that adequate reserves are made for cost overruns.

ARV: Be conservative on your ARV since the appraisal concerns one person's opinion.

Timeline: Whatever a contractor says, add 4-8 weeks and budget for those holding costs.