Learning to BRRR Long Distance

[Kelly Iacovelli]

I'm looking for a mentor to help me get started in long distance buying of multi-family properties using the BRRR method. I do flips and rehabs locally, am a Real Estate Broker. I'm also looking for private funding.

[Jon Martin]

For long distance, try to find yourself an "errand boy" in your market, for lack of a better term. Someone who can do odd jobs like assembling furniture, accept deliveries, take videos of contractors work, fix small things, etc but won't command a high hourly rate for specialized labor. Start with small low risk jobs and scale up from there as you build some trust. 

I found a guy on ThumbTack for my house in Greenville SC under "Movers". He advertised that he also cleans out crawl spaces and power washes houses, and there is no job that he hasn't turned down. I even had a situation where I would've needed someone to represent me in person with the sheriff and he was willing, but thankfully that situation resolved itself before it got to that! 

[Jaron Walling]

@Kelly Iacovelli Question for you. What's it like investing in Boise, Idaho? 

I've seen so many people moving there in last few years. Lots of demand and value add opportunity I'd assume. Given this market a long distance BRRR deal sounds like a nightmare but that's just my 2 cents.

[Kelly Iacovelli]

It's very competitive. The 1% rule doesn't apply. I believe most people are buying with the thought of the increasing values will eventually cash flow the properties. We have extremely low inventory like a lot of areas. New construction is thriving.

[Trevor Reilly]

Cash flow is hard to come by but like Kelly stated it's definitely an appreciation play right now. I will say based on rent growth there are quite a few properties that folks purchased in 2020/2021 that wouldn't have cash flowed that will likely be positive upon their next tenants. 

Also, Kelly - what size multi-family are you looking at? I have a team in Indiana I've been working with and so far so good, I could at the very least try to answer any questions you have about getting started. 

[Jon Martin]

For long distance, try to find yourself an "errand boy" in your market, for lack of a better term. Someone who can do odd jobs like assembling furniture, accept deliveries, take videos of contractors work, fix small things, etc but won't command a high hourly rate for specialized labor. Start with small low risk jobs and scale up from there as you build some trust. 

I found a guy on ThumbTack for my house in Greenville SC under "Movers". He advertised that he also cleans out crawl spaces and power washes houses, and there is no job that he hasn't turned down. I even had a situation where I would've needed someone to represent me in person with the sheriff and he was willing, but thankfully that situation resolved itself before it got to that! 

[Kelly Iacovelli]

I’m just getting started so I’m open to 2-4 doors but really interested in 5 or more. I’d love any help. Thank you

[Kelly Iacovelli]

Quote from @Jon Martin:

For long distance, try to find yourself an "errand boy" in your market, for lack of a better term. Someone who can do odd jobs like assembling furniture, accept deliveries, take videos of contractors work, fix small things, etc but won't command a high hourly rate for specialized labor. Start with small low risk jobs and scale up from there as you build some trust. 

I found a guy on ThumbTack for my house in Greenville SC under "Movers". He advertised that he also cleans out crawl spaces and power washes houses, and there is no job that he hasn't turned down. I even had a situation where I would've needed someone to represent me in person with the sheriff and he was willing, but thankfully that situation resolved itself before it got to that! 

 Thank you