Rethinking Out of state BRRR Not as easy as they say.

[Joe S.]

So I found an out-of-state area that the numbers seem to make sense For the BRRRR model. The buyer's agent/brokerage also owned a property management company. I was under the impression they would check in on the contractor. That has not seemed to be the case to the most part. I have had to make multiple trips out of the area to go see the properties. I completed one rehab. I had to go in person multiple times. I have another property there rehabbing and it has been very stressful. I had bought a third property, but I wholesaled it just to get out from under the property due to the stress of overseeing an out of state rehab. Am I the only one experiencing this sort of thing? Has anyone else been able to crack the code for out of area rehabs?

[John Warren]

@Joe S. I almost all BRRRR deals, although I prefer the term value add since BRRRR implies that you will hit a grand slam every time. I focus here locally in my suburban Chicago market in Berwyn, Lyons, Cicero and surrounding towns that are within 10-15 minutes from home. I went on vacation for one week and all of my trusted contractors took time off my projects even though I was getting picture and video updates. This business is hands on, and I just don't see how you can do this remotely while backpacking or skiing all day like people will tell you.

With that being said, if you can find a market you enjoy then it may make sense to build a team and be more hands on. Why not focus in your own market though? If San Antonio is anything like Chicago, then there are bound to be opportunities within your local MSA. Maybe you just need to drive 30 minutes to find a pocket of opportunity?