Well, well, well, Bluey’s house is up for sale! According to some insiders down under, the famous Queensland hilltop known as the Heeler House could fetch as much as five million Australian dollars. For those who need a quick conversion, that’s approximately 3.3 million US dollars. If you haven’t caught the latest episode of Bluey, you might be surprised to learn there’s a for-sale sign in their yard, leaving us all wondering what’s next for the beloved Heeler family.
While I hope they embrace a nomadic lifestyle like ours, this scenario made me reflect on real estate investing and how it applies to the BRRRR method. I’ve never considered investing in Australia, but this situation got me thinking. Whether it’s Australia or a small town like Timbuktu, Alabama, entering a new market requires a strategic approach, especially when you’re using the BRRRR method (Buy, Rehab, Rent, Refinance, Repeat).
When evaluating long-term rental investment properties in unfamiliar markets, I use three quick questions to guide my decision-making process. These questions help me determine if a property aligns with my BRRRR method criteria or if I should move on to the next opportunity.
1. Is the property in a flood zone? My personal investing criteria—or what some of you cool kids call a “buy box”—start with avoiding flood zones. I don’t want to deal with potential flood issues. I always check FEMA’s website to determine if a property is in a flood-prone area. Even if you’re open to investing in flood zones, it’s essential to factor in the required insurance costs during your underwriting process.
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2. What are the population trends in the area? The next question I ask is whether the population in the area is growing or declining. For this, I turn to bestplaces.net. A negative population trend is almost always an instant deal-breaker for me. I prefer investing in areas with increasing populations, as they generally offer better long-term prospects for rental income and property appreciation. However, sometimes a population decline can be misleading. For example, in Atmore, Alabama, where we own 16 units with partners, the removal of a large state prison population from the city’s census skewed the numbers. While it initially appeared as a decline, the area was actually experiencing positive growth.
3. Does the person presenting the opportunity meet my partnership criteria? Finally, I evaluate the person or group presenting the investment opportunity. Do they meet all my partnership criteria? I try to disqualify potential investments quickly, especially if they come through informal channels like Facebook Messenger from someone I’ve never spoken with. However, if they meet my criteria, they might get an invite to join the W2 Capitalist community, where I can further vet them through weekly calls and interactions, both online and in-person.
Does the BRRRR Method work down under???
As we all eagerly await the fate of the Heeler household, I’m curious to know—what are your best practices for quickly disqualifying new real estate investment opportunities using the BRRRR method? Share your insights and let’s keep the conversation going!
Common FAQs using the BRRRR Investing Strategy:
I use and highly recommend DealCheck.io.
With none of your own money, yes. Partnerships are the best way to grow your portfolio without using your own money. Utilizing creative strategies like Hard Money (via W2 Cap Capital LLC) will allow you to fund the purchase and rehab with only 10% down (sometimes 0% down given the opportunity).
Off market. If you don’t know how to pull an off-market list or the mailers you’re sending aren’t producing the results you want, watch the free video at https://FindYourNextBRRRR.com to see exactly how I’m finding our most profitable properties.