Big City BRRRR Deep Dive with Joe Asamoah (Part 1)
ฝัง
- เผยแพร่เมื่อ 3 ส.ค. 2024
- Most people don’t associate the BRRRR strategy with section 8 rentals. When most people think about section 8 rentals, they think of run-down homes, troublesome tenants, and negligent landlords. This stereotype may prove true in some markets, but for Dr. Joe Asamoah, this is far from reality.
Joe has built his real estate portfolio by renovating homes to an incredibly high standard, situated in some of the best neighborhoods in the DC market, and all while under section 8 housing. Joe figured out early on that section 8 housing authorities gave much more rent money for houses with 5 bedrooms and up, so he started renovating to match the rent section 8 could provide him. This not only allows him to take home a sizable profit, but score tenants who will respect his homes as their own, and stay there for 15 to 20 years minimum. This is no joke, Joe has tenants who have been with him for two decades!
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Episode 498
Show notes at: www.biggerpockets.com/show498
0:00 Intro
3:59 Quick Tip
5:39 Welcome Back, Dr. Joe!
8:34 The Big City BRRRR (with a Section 8 Twist)
11:52 Real Estate for the Long-Term
20:45 How to Find Properties in a HOT Market?
24:02 Section 8 & Bedroom Counts
25:58 Finding This Deal
30:31 The Initial Property Numbers
34:25 The BRRRR Strategy
36:50 Financing the Deal
42:39 Designing the Rehab
47:24 Finding a Great Architect
48:49 Finding Reliable Contractors
51:32 The 10 Steps of a Renovation
56:52 Managing (Without a Manager)
1:05:19 Become THE Best Landlord
1:08:36 Famous Four
1:16:25 Reviewing Joe's Big City Strategy
![เจ้าผู้เดียว - ดิด คิตตี้ [OFFICIAL MV]](http://i.ytimg.com/vi/q0NLCYKBOTo/mqdefault.jpg)
I’m not even 20mins in and this episode is a GOLDMINE. So appreciating this content w/ Dr. Asamoah. Feels likes a master class.
Okay, Dr. Asamoah representing for the DMV and West Africa! Hoping he’s open to mentoring a young blood with nothing but motivation. Cheers to Bigger Pockets for breaking this down for us beginners 🙏
Always a pleasure listening to Joe, caught the first interview when it came out as well.
I would love to see Joe's Rental applications. I definitely learned a lot!
Great job, great service with humility and heart in mind!!!
Dr. Joe’s podcast are always my favourite 🤩
Dr. Joe is the truth. Discovered him on your show, then by chance met him in person in DC. Just as genuine in person as on here. Looking forward to working with him very soon.
Love what this man has done. Truly inspirational!
Dr. Joe is a real estate genius! My strategy since 2019 has been his! Just finished a higher end rehab in a good area where a bedroom was added and looking for a section 8 tenant soon!
What area?
@@tannerbeverley26 Suburbs in Maryland
Please let us know how it goes! Congratulations in advance!
Hi Joshua, I’m planning on doing the same in MD suburbs and would love to connect if possible and learn from your experience 🙏
I just started watching this show. And since I've hear Dr. Joe Asamoah, I need him to be my mentor in real estate
Great perspective, creative thinking. I got a ton out of this episode, thanks guys!
Really liked the suggestion to go to prospective tenants house and the I’m gonna be best landlord mindset... good stuff 👍🏻
Oooohhhh, I'm excited about this!! Thank you so much!!
Looking forward to part 2!
Checking in from the A!
Looking forward to part two!
Great show 💪🏾💪🏾
lots of great information here. Thank you all for helping us budding investors!
This guys is structuring this interview like his investments. I like it
When is part 2 coming out? cannot wait!!
This man is awesome
Checking in from Ny…
Salute to my big Brother joe and my biggerpocket family.
Akwasi Awal From Ny
Great episode. I use to frequent DC in the early 90s and wished I knew how REI worked because I saw this day coming.
I love Joe. He stages for a rental. Damn. What a beautiful person
I love Phil's book too, he also has a TH-cam channel too.
Hey guys love the show 👏🏽👏🏽watching from Canada 🇨🇦🇨🇦can we get more Canadians on the show just to help out over on this side of the border just to get advise I’m 22 years old love the show again
They book he is referring to is called: Real Estate Investing Gone Bad by Phil Pustejovsky
That's a crazy price for DC at this time!!!
My mother said back in days 50's they would visit your home before you rented in a high-end building.
Repetition is how we learn.
About to get our first unit up and running. But want to refinance once it rents..... any tips? Its our first and we bought a year or so ago in Indiana. And we want to pull cash out to invest in another property.
Thanks.
Brandon, did you just say number uno? Lol
This interview was 🔥🔥🔥😊. Thank you BP and Dr. Joe!👍🏻
Glad you enjoyed it!
You just described the chickfila landlording model
Do you think right now or a year from now would be a good time to start to invest in the BRRRR method?
Okay, I'm not done listening to this episode yet so not sure if this has already been answered.. I'm wondering if you solely rent to section 8? What if a non-section 8 tenant comes applies and wants to rent? I'm in California so I'm thinking would it be discriminatory ONLY renting to section 8 tenants? Or does section 8 pay more than market for this size home and would deter a non-section 8 tenant bc the price is over market ??
31:29 : why is acquisition loan amount showing 0 ? Dr Joe said bank financed 75% of purchase price and 75% of rehab cost - did bank give that without charging interest ?
Brandon, if you haven’t done this yet, ask your subscribers to give ideas of what to call David, and you can pick some very good ones and give the subscriber credit.
BP should have one of his tenants on the show
He did an episode with 3 of them actually - th-cam.com/video/ODNN1TI3e5s/w-d-xo.html
Vacations? Damn
$5,468 rent includes the share of the tenant? with utilities included?
I appreciate him adding value to the house, but finding a 5 bedroom voucher holder is rare, maybe super rare. The average holder is holding a 3 bedroom voucher. Which means you'll get 3 bedroom rent, not 5.... Unless he finesse'n private pay with the two additional rooms. Idk
This is what I’ve been wondering since I saw the first episode with him. I’ve seen 5 bedroom homes in decent neighborhoods in a good market near me that would cash flow 15+% and $600-800 per month, but that’s been my major question is how long will it take to get a tenant in there that actually has that 5 bed voucher
@@chaseskotnicki9229 Don't let that stop you. Settle for a smaller profit margin just to have the property & income coming in as the property gains equity. Start networking/hunting for a 5bd voucher holder on social media. When the time is right, you'll have the unit ready when they're ready to move in. Even though I have my units rented, I still stay in touch with others tenant candidates because I never know what tmrw holds.
Talk to your local housing authority first maybe?
@@tannerbeverley26 about what? The guidelines are clear.
I have a section 8 tenant on a 3 bedroom house & they could only get a 2 bedroom voucher. We removed the door, the door stops (I think that's what they're called), & filled in the hole for the latch & it became 2 bedrooms and a den. It passed inspection & they've been there for 2 years now.
Where you live at hahahahaha!
The numbers sound objectively bad to me. You can do much better numbers in Florida in both terms of cashflow and creation of equity. Sounds like he’s investing nearly a million dollars for a very small maximum appreciation potential, very limited cashflow, not seeing how this strategy is attractive in DC
Could you have a triplex and rent out each apt via section 8?
Self employed-new, have 100K equity in investment home, how to access equity? To build a rental home on my property. 675 fico