Looking for direction on how to start

[Stetson Coursey]

I'm looking for advice on advancing in real estate investing. I'm 19, based in south central Kentucky, and purchased a home in August 2023 through seller financing. Currently, I work as a real estate agent and plan to invest in rental properties within 1-2.5 years. My ultimate goal is to transition into full-time real estate investing.

My current home is a 3-bed, 1-bath, approximately 1960 sqft, needing updates. I'm considering applying the BRRR method to my own home, without renting it. Would it make sense to invest in improving my home, then refinance with a bank to extract the created equity, and then use that money to purchase a rental property? Or should I save up separately for my first rental property and keep my personal residence out of this?

Long-term, I aim to acquire multiple rental properties using the BRRR strategy to generate income and improve my community. What's the most efficient way to achieve these goals? How should I calculate a for doors to income to know roundabout what my goal should be?

[Lucas Gallaher]

what I would do to decide if brrr method is the way to go-

Assess the cost of necessary updates and improvements and compare them to the potential increase in your home's value. Prioritize high-ROI renovations such as kitchen and bathroom upgrades, flooring, and enhancing curb appeal. Ensure that the updates are of high quality yet within budget to maximize the increase in value.

When it comes to refinancing, after completing the renovations, you can refinance your home to access the created equity. Ensure that the new loan terms are favorable and that the equity extracted will significantly contribute to your next investment. Finally, obtain a professional appraisal post-renovation to accurately determine the new value of your home.

(good luck)

[James Wilcox]

Quote from @Stetson Coursey:

I'm looking for advice on advancing in real estate investing. I'm 19, based in south central Kentucky, and purchased a home in August 2023 through seller financing. Currently, I work as a real estate agent and plan to invest in rental properties within 1-2.5 years. My ultimate goal is to transition into full-time real estate investing.

My current home is a 3-bed, 1-bath, approximately 1960 sqft, needing updates. I'm considering applying the BRRR method to my own home, without renting it. Would it make sense to invest in improving my home, then refinance with a bank to extract the created equity, and then use that money to purchase a rental property? Or should I save up separately for my first rental property and keep my personal residence out of this?

Long-term, I aim to acquire multiple rental properties using the BRRR strategy to generate income and improve my community. What's the most efficient way to achieve these goals? How should I calculate a for doors to income to know roundabout what my goal should be?

@Stetson Coursey first off where are you Welcome to the BP forums and where are you located?

Renovating your personal home has several advantages that can be difficult to quantify since you experience the most benefit directly. Will this improve your quality of life? If so, by how much? In this situation, it seems more like you're doing a live-in flip rather than a BRRRR strategy. Do you have the funds for renovations, and is it worth the effort? I like the idea of renovating your home and considering a HELOC instead of a cash-out refinance. The current terms on your first mortgage might be favorable, and you might not want to lose them with a full refinance, especially given today's interest rates. With the HELOC you can tap into that equity in the home when you need it for other projects.