Newbie finding the right area BRRRR

[Aaron W Cary]

Hello everyone!

I'm currently 25 working full time as a pilot with a lot of flexibility to move around the country. I'm looking to BRRRR for my first deal but don't have a lot of capital to do it (sub 100k). Does anyone have a market they love where a cash buy/rehab can be accomplished sub 100k without a lot of headache from tenants afterwards (class B areas and above?). I feel it would be impossible to do this where I currently live in California. I was looking into Memphis TN/Evansville Indiana as possibilities. Atlanta also looks appealing for being close to work.

I'm currently reading through David Greene's BRRRR book and its awesome!

Thank you!

[Brenden Mitchum]

Hey @Aaron W Cary, welcome to the BP community!

Someone hinted at this above, but might be worth looking into house hacking or a combo of house hacking and BRRRR. I only say this because BRRRR can be a very capital, time & knowledge intensive strategy. You will need a lot of at least one of those things, likely all three for your first one. Building a fantastic team will certainly help lessen the burden but again, that takes time and knowledge.

House hacking on the other hand can really be as difficult as you want it to be. If you have lots of free time and want to get more experience and better returns, buy something that needs some work and fix up one side. Move into that side and start fixing up the other side before you rent it out. Refi 6+ months later. Move out in a year and do it again. The easier, less time intensive version is to buy something more turnkey and cut out much of the rehab portion of the strategy. 

Lots of options on house hacking and you can get fantastic low-down loan products (granted the property is in good enough condition). This is the no-brainer strategy for someone who has the option to move to any market.

Don't get me wrong though, BRRRR is an awesome strategy. I'm just suggesting you get set up in a market with a house hack since it's easier and requires less capital/energy (usually). As you learn the market better and build your team, you can then more easily begin BRRRRing!

Hope this helps a bit. Please, feel free to reach out anytime if you have other questions or just want to chat!