Out Of State BRRRR | What You Need To Know

I have been buying and selling investment property since 2007. I currently own a personal portfolio of 31 single family rentals that I purchased using the BRRRR strategy so I am very familiar on how this process works.  I wanted to share with you a few things you will need to know before you decide to look for BRRRR properties out of state. Hopefully this info will help set the tone for you.

 When you decide you want a BRRRR property you need to understand that they are not in most cases readily available. Sometimes it can take a while to find one. Any home that works for this strategy also works for every flipper and if the home is listed on the MLS, you will most likely have too much competition to deal with. You then need to get connected with local wholesalers but know that they do not operate like a normal listing/realtor. You will not get 10 days for due diligence to do home inspections. You will need to get someone to look at it fast for you and take a bit of a risk on the deal bc wholesalers will have several cash buyers lined up to buy if the numbers are right.

So how does someone successfully complete a BRRRR transaction who is an out of state investor?  The best thing I can suggest is you need someone who is very familiar with the whole process. Someone who has access to contractors who can get rehab estimates, access to listed and off market properties. Ideally a licensed Realtor with knowledge of the process and connections. This will increase your chances of getting one.

You also need to know that this buying process is essentially a way to try and beat the system of the standard 20% down conventional purchase model. You might not be able to do zero down, you might have to leave a little money in the deal. Also, be prepared that the possibility of the home not appraising where needed, or renovations going over budget are a possibility.

BRRRR deals are out there. Make sure you have a solid connection and can act quickly.