Save cash to BRRRR? Or finance and jump in?

[Matt Rekowski]

Hi everyone,

Looking to start my real estate investing journey. I'm a fairly high earner and 26 years old. I'm leaning toward primarily doing BRRRR, however, I'm assuming it's going to take me some time (maybe 2-3 years) to save the cash necessary to buy my first property. I already max out all of my pre-tax retirement avenues, and that seems like a lot of time saving and waiting with a high opportunity cost in this current market, rather than jumping in and buying a rental property with traditional financing.

Does anyone have any thoughts or advice? Hopefully this makes some sense.

Thanks so much in advance.

[Ryan Leonard]

I agree with Cayden. Financing is a great way to make your first investment, as it is a less "nerve-racking" and emotional experience putting 25% down on a property compared to 100%. Using bank financing will get you the experience you need before you jump in and BRRRR your first property. Additionally, if you finance a property that needs some renovations, you could always put "sweat equity" into the property, and pull that equity back out with a refinance when you're ready to do your first BRRRR in a few years. That way, the money you put down on your first investment won't be taken away from your cash pool for your first BRRRR.