Buy multi-unit for cashflow or hold out for BRRRR opportunity?

[Stephen Ray]

Hi BP, I'm struggling with my next move and was hoping for some advice from the wealth of knowledge on these forums. After finding out about the BRRRR method, to me it seems like a no brainer as a great way to build up a nice buy and hold portfolio. I've been putting offers in and looking at tons of properties with not much luck (granted they are all MLS properties). I really would like to get a hold of my first rental ASAP. The market that I'm in offers plenty of opportunities for SFH and MFH that would cash flow (mostly C neighborhoods). Some even have opportunities to add value and increase rent, but not enough that would allow me to BRRRR. Is it worth it to spend my capital on a property that cash flows and has value add possibilities even if I will most likely not be able to pull my cash back out? Realistically you're not cash flowing until you have recouped your initial costs (Down payment + closing). I read a lot of forums where people are paying cash for properties some turnkey and some not and being happy with cash flow.. but you don't really cash flow until you've re-couped your initial costs correct? My plan is to sell this live in flip in May (after the 2 years to avoid capital gains) and try and house hack in another multi-family. My end goal is to accumulate a decent portfolio of SFH and MFH. So for someone with limited capital should I just hold out for something I can BRRRR or pull the trigger on a cash flowing property to get started ASAP? Thanks everyone.