Noob Investment Plan – Sage Advice and/or Firing Squad Welcomed

[Richard Hall]

Hello Bigger Pockets!

After almost 3 years of driving through Mexico, Central & South America my wife and I are back to the grind. My spouse returned to her govt. 9-5 and the path I’ve chosen is Real Estate Investing. While I’m fully committed to educating myself, I have no “on-the-ground” experience so I’m here to humbly ask for advice. My plan summary is as follows:

GOAL: Build wealth via buy & hold RE portfolio. SFR equity through renters covering all expenses (+ Future CapEx). Not relying on positive cash flow and appreciation; only as possible perks. Very interested in the associated accounting strategies/benefits.

STRATEGY: Buy, Rehab, Rent, Refinance, Repeat (BRRRR-ish) - Currently looking at properties/markets with limited risk and will probably have to leave some money in the deal(s).

I have no other job and am completely mobile. My plan is to drive to desirable markets and leave my truck camper at a local campground (home). I can then spend all my time getting a feel for the area, scouting neighborhoods and building local relationships. After purchase I can live on-site, managing contractors and putting in sweat equity 24/7…taking breaks to visit local breweries of course J

FUNDING: $70K cash available. Some additional in Roth IRA (contributions). FICO Scores 800+

• -Down Payment: Cash
• -Mortgage: Conventional Loans or Private Lending & refi?

PROPERTIES: Single Family Homes $150-$200K. Interested in healthy markets with great schools/neighborhoods & growth potential. It looks like spreads on deals will be much thinner in such areas (Colorado Springs?)

My background is in Accounting/Audit and we live very frugally. We’re not fans of “stuff” and are currently living with family for free. My wife will be working and building additional capital while I acquire our first few properties.

MY QUESTIONS/CONCERNS:

1) Please tell me what you like/dislike about this investment strategy. I’m looking for honest opinions to stress test my ideas.

2) Should we consider Private Money for our first buy? I go back and forth between the benefits/drawbacks.

3) If starting all over again, where would you focus your research/education? I’m deep into too many RE topics and would like to narrow my focus.