First Rental, BRRRR or Buy and Hold

[Hariharan Elavarasan]

If the local area wouldn't really make sense to do a BRRRR, is it better to buy a property, fix it up just a little and then start renting? Single family or multifamily

I‘m estimating about 20,000 for 1400 sq ft MFH, but if the houses in the area aren't also fixed up and selling for a good ARV, then should I focus on a different strategy for my first purchase?

What has worked for people that at least gets them equity? I’m fully prepared to not be disappointed when i see a a small cash flow for my first couple purchases.

[Scott E.]

The way your post is written makes it tough to answer. I'll do my best...

1. You need to think about your goals/objectives. Are you prepared and open to getting into some projects that require construction, or would you prefer turnkey? Are you looking for cash flow, or would you prefer to flip properties to build capital?

2. Once you map out your goals, evaluate your personal credit/income/assets. Are you in a position financially that aligns with your goals? If not, think about what you need to work on (paying off debt, increasing credit score, saving up more money)

3. After you identify what real estate investing niche you want to pursue and get your personal finances in order, spend the next 3-6 months learning everything about that niche. Surf the forums, read the blogs, listen to the BP podcasts.

4. Pick a sub market

5. Build your team of agents, contractors, title companies, etc

6. Start making offers on deals