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Updated over 6 years ago,
$80K - Buy and hold strategy: Purchase using conventional or BRRR
Hello,
My husband and I are new to BP and getting ready to start our path to financial freedom; however, we're hung up on a strategy. If you've had this type of issue when you were starting out please chime in and let us know what helped you along the way.
Issue: We have $80K to start our initial investment with buy and hold properties. Should we use those funds to start the BRRRR route, or should we use a conventional loan to purchase multiple properties and use the $80K as the down payment for the multiple homes? Which method will grow our investment without jeopardizing our plans, or become a roadblock in the future? With the BRRRR route, we will have to start slow and go with one house at a time (if we consider lower priced homes) to build our portfolio. If we follow the BRRRR route, we will purchase somewhere between 2-3 homes and will have to go slow vs paying a down payment for multiple homes.
What have you've done that worked? Am I understanding everything correctly? Are my roadblocks realistic when considering my goal? Your insight is appreciated and we look forward to hearing from you!
Thank you,
VB