Which strategy is better use of my capital for my goals?

[Brian Garrett]

I have spent the past 6 months or so educating myself on REI as much as possible primarily here on BP by listening to countless podcasts, posting tons on the forums, analyzing hypothetical deals, networking with other investors, realtors, wholesalers, lenders, contractors, etc. Now I'm ready to take action and start looking for my first deal.

I was fortunate and disciplined enough to build up some decent savings to have as working capital to get started.

My plan is to use the BRRRR strategy to ultimately build a portfolio of SFH's and MFR's. I feel this strategy will work best for me since I can continue to recycle my initial working capital over and over again which will allow me to scale quicker.

The end goal is to have a large cash flowing portfolio which I'm prepared to work full-time at to ensure that I succeed.

I'm not treating REI as a hobby or a side hustle this is now a full-time job moving forwards for me.

If you were just starting like me, keeping my goals in mind, would you take the initial capital and use it as down payments spread out among multiple residential SFH's and/or 2-4 unit MFR's or would you use it all as a down payment on one larger commercial multi-family property?

On one hand it's enticing to spread the capital among multiple properties to diversify and kick start my portfolio but on the other hand I know eventually I'm going to want to scale into larger properties for maximum cash flow.

What would you do if you were in my shoes?

[John Akolt]

I would buy one SFR first. Make a few improvements and iron out your process for listing and renting the property. You'll quickly make a ton of mistakes that can only be learned by experience. If you start small $ the mistakes won't matter too much. If you spend all your money upfront the lessons learned won't matter.