All Forum Posts by: Jaron Walling

@Philip Levi Was the quote just for the kitchen or the entire property? Do you have unlevel flooring or structure issues? If it's just the kitchen that's insane. That's the "we don't want your business" price. We're busy. 

I'd research what rental grade renovations look like. It's most where you choose to buy cabinets, like the big box stores. They're generally cheaper but great for rentals. Install 100% water proof flooring where you can, and countertops that match the neighborhood (your rental competition). Tile backsplash may not be necessary but from our experience it really boosts the appeal of the property. It's inexpensive and any contractor can install it. 

The must have renovations are ones you can't see. Make sure you're electrical panel has been professionally gone through. Replace your outlets, GFCI's in wet areas, and make the unit safe. I'd also check all the plumbing under the sinks and bathrooms. Future proofing is expensive but the savings on the back end are insane. You're trying to limit calls and costly repairs. 

Paint the interior and paint the ceiling flat white. People cheap out on paint and it really shows in listing photos. You're setting an expectation for the property. You want the best tenants in the given neighborhood. Make it clear and weed out people naturally.

@Ko Kashiwagi Agreed. We have taken 60-65% LTV on refinances to make the numbers work, but we can't grow our portfolio doing that. We could comfortably do it again but why? It's just draining our capital. The distressed properties I get access to keep leaning towards a full gut flip, but we're not flippers. We have 9-5 jobs. 

We need the courage to take on bigger projects. That seems like the best path forward due to lack of supply. 

Up until this point our REI experience has been cosmetic+ BRRRR deals. In 2025 we started actively looking at listings, wholesaler deals, and driving for dollars. Given this market there's no low hanging fruit. The sold prices for distressed stuff (what we look for) compared rents don't make sense in most cases. Profitable as a flip? Maybe for the right guy, but the margins are tight. My wife is not going to support time away from our kid to make $12k gross profit. I don't blame her. 

Long story short we need get out of our comfort zone and aim higher (forced appreciation play/ nicer neighborhood, no cash-flow) or buy cheaper more distressed properties (cash). Aiming for full gut interior, electrical, maybe plumbing, drywall, windows, flooring, HVAC, and probably exterior paint and landscape. Our rehab budget would be about $60-70k for 1200sqft, 2/3 bed, 1bath. We have some contractor support. I want to GC on our next project, and think differently. I'll complete some easier projects to save on labor. 

Is this realistic? Is BRRRR dead in 2025? We need some inspiration.

@Isaiah Murray Like mentioned above you have to do the due diligence and study the market. You have to learn the numbers and start analyzing opportunities. You need to ask yourself "why" real estate investing? 

You can find valuable information in books, podcasts, and these forums. Do all of it. Without the basic education, financing, and key relationships REI is risky.

Depending on your experience, strategy, and risk tolerance it could take 6-12 months to buy your first property. Narrow the funnel because REI is vast. Learn to say no and focus on your goals. Don't let other people discourage you!

@Beth Chambers What is the strategy here? What are you're long term goals with REI? Owning a campground or renting houses?

Sounds like a mix of opportunities provided you fix it up better than "poor" condition. I'd think you have snow bird traffic and retires looking for prime places to stay during the winter but that's very location dependent. It's tourism strategy. If so I'd lean on that and maximize the piece that creates the best ROI. Sell or demo everything that doesn't align with your goals.

@Trevor Halama You need to get more narrowed down on your search. Indy can be street-by-street in most areas. Lots of different price points based on neighborhood, street noise, investor activity, or lack of it. 

The majority of contractors do not understand REI, running the numbers, or strategy.

Sorry to say but it's time to lawyer up.  

@Simon Delony Why are you renting? 

You could buy a distressed deal, add some value (as a team), and refinance when interest rates are more favorable. 

@Evan Cruz The first property I bought was a BRRRR/house-hack combination. I choose that path because it was the fastest way to build equity and to cut my living expenses. It's possible especially if you already know someone that wants to live with you. My brother rented a room for 2 years. Remodel took 5-6 months. Found deals and paid cash for everything. I also planned to hold this property for long time. Ended up moving and renting as a LTR> cash-flow play.

For BRRRR type deals you want to work in reverse. You have to know the market and ARV. Without it you can't find/buy/create a deal. My first property was distressed, cosmetic+ rehab but it qualified for an FHA loan, 5% down. I looked a 7 properties all within 5 mile radius. Look in the "fridge area" C class zones. Contrary to what I read online my lender never questioned the condition of the property. People say FHA loans are more strict but that wasn't my experience. I believe it was because I had good track record with the the local lender, $25k cash in savings, and a property that appeared okay in photos.  

If you can find the right property, sacrifice for 6 months, it can absolutely change your life. My cost of living has be reduced on every deal since my first property. The American Dream is alive and well in this country but you have to make it.  

@Rick Zink You should lay out the numbers for this amazing deal. You'll get advice on which financing strategy makes the most sense. I could be wrong but I've always viewed HM as a "bridge" to get a rehab to the finish line. I'd not rely on one to fund the entire deal. 

Getting over leveraged in this market is a bad idea.