.: I'm taking a break from buying and my previous approach of analyzing deals in inexpensive markets, looking at hundreds of properties on Zillow and running the numbers, which I spent hours each on each day and became really burned out.

The BRRRR strategy is a systematic approach to real estate investing that revolves around five key steps:Buy: Purchase a property, often below market value, that has potential for appreciation and improvement.Rehab: Renovate the property to increase its value, make it livable, and improve its rental potential.Rent: Find reliable tenants who will pay rent, allowing you to generate consistent cash flow.Refinance: After the property is rehabbed and rented, refinance it to pull out the equity you’ve built through the renovation.Repeat: Use the cash obtained from refinancing to fund your next investment property, starting the cycle again.Step-by-Step Breakdown of the BRRRR MethodLet’s take a closer look at each stage of the BRRRR strategy to see how it works in practice.1.

As a property management company in Washington, we help owners navigate these challenges and optimize profitability if they want assistance analyzing their property or planning future strategies.

As others said out of state can be more challenging based on location but local or out of state both can be done. 

It’s clear that the evolving market, especially post-GFC have shaped your perspective, and you’ve outlined some valuable points about the flexibility and challenges of private lending.The flexibility in ARV and LTV is such a huge advantage, especially for investors who might not have traditional financing options.

With that in mind, I’m considering purchasing four rental units over the next four years to build a stream of income that could help supplement my retirement by age 68.The challenge I’m facing is that the deals I’ve come across so far don’t make financial sense.

Quote from @Sean Barnebey: This is an interesting opportunity, and it sounds like you’re approaching it wisely by considering the numbers carefully.

Successful BRRRRs are challenging enough to do local to you.  

Are there better markets or hybrid approaches I should consider (e.g., smaller multifamily properties that accept Section 8 tenants)?

Given you and your investor both have experience in different areas, I’d say keep a flexible approach and compare city requirements before putting too much money down.