I think it depends on how you are adapting BRRR to this market. I 100% agree with Trent, deals are slim and there are a lot of investors looking for them. As an investor and residential realtor, I've both done them and help people buy them.
Unlike Kansas City or Memphis where you can buy a house for a pack of playing cards and some gum, Salt Lake's market is now a value-market. Too many people for not enough houses. I think the adaptation happens in a couple ways.
1. How are you buying the property to begin with?
2. Are you going to live in the home ever?
1. I recently did 3 rentals by buying them using hard money from a wholesaler, putting in the repairs money and then doing a "rate and term" refi, which is NOT a Cashout Refi. This type of Refi doesn't have the 6-12 month waiting period, with the stipulation that you can't pull money out (you can however be reimbursed up to 2k in closing costs). The reason for that is, my repairs typically are done in a couple of months, and I don't want to eat up my equity by holding hard money that long. My repairs are the money I leave in the deal, for the short-to-medium turn. So my only contribution to the deal is the repairs, which I consider my down payment. I'll hold that for a year and then refi for cashout. I love Biggerpockets, it's been the foundation of my investor knowledge for years. At times, the articles make it sound like you can just turn around and pull money out. That may be true in many markets, but as an expert in Utah real estate, I can tell you it does not work that way.
So much of this is driven by an ability to see the big picture, meaning, if I'm holding this for 10 years, and I know I'll pull out money in a year or two to invest in the next property,it'ss considered a BRRR in my book. The only difference is the timeline.
The other thing I realized is that I only have to have the capital for the repairs with this method. So if I can buy a house with hard money that needs a lighter rehab and still get the same equity for the refi, I can buy more rentals before I've refi-ed my first. This is what I love about real estate, there are so many awesome things we can do as investors.
2. Some of my investor clients are also buying Single Family Homes as owner occupys that have a mother-in-law apartments. The great thing is that 75% of the income for the MIL counts towards their income ratio. Their plan is to live in the house for a year or two then go buy another house with a mother in law and keep the old one. If you did that once every five years you'd have 9 doors!
I hope that helps. My goal is to help people understand how they can build wealth in this market.
