Real Estate Rookie 235: Investing in 100-Year-Old Homes Straight Out of College and the "PRR" Method w/Amy Wright and Mitch Mathern
To have something you’ve never had, you have to be willing to do something you’ve never done before. Today’s guests, Amy Wright and Mitch Mathern are doing something most people haven’t seen before, a twist on the BRRRR method. They’ve closed on three properties in three years, and all their properties are over 100 years old!
Amy and Mitch started their real estate journey right before COVID and went into contract on their first property in February 2020. They started investing when Amy was fresh out of college, and with no money to buy an investment property, they bought a primary residence instead. Since they purchased the home as a primary residence, they used an FHA loan and came to the closing table with only $7,000! Their first property marked the beginning of their strategy: purchase as a primary, rehab, and rent—the PRR.
But buying older homes isn’t a drawback to this strategy, it’s a benefit! Amy and Mitch refer to themselves as restorers instead of flippers. While they rehab their homes, they do their best to keep the character and history alive. Their unique strategies have helped them differentiate themselves in their market and succeed. They hope to keep up their current pace of one property a year and eventually increase the number of properties per year as they continue to scale.
In This Episode We Cover
The benefits of a live in flip and how to pace yourself when doing the rehab
FHA lending and how to take advantage of all its benefits when you first get into real estate
How to spot renovation red flags when walking a potential property and how to DIY your rehab
Investing in older homes and how to rehab an outdated property while keeping its history alive
How to attract a top-tier tenant and screening tips that will save you a LOT of time
How to structure your “buy box” and shift it as needed so you can grow your real estate portfolio faster
And So Much More!
Links from the Show
Find an Investor-Friendly Real Estate Agent
Real Estate Rookie Facebook Group
6 Ways to Invest in Real Estate with Little Money or Experience
Connect with Amy & Mitch:
Check the full show notes here: https://www.biggerpockets.com/blog/rookie-235
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