Turnkey in a hot market or BRRRR outside of the city?

[Larkin Briley]

I'm new to the BP community and ready to begin my REI journey. I'm located in Nashville, TN, I only have $10K liquid cash, but I can take out a $100,000 HELOC on my primary residence. I'm thinking about two options.

1. Turnkey on a slight margin in Nashville. I have the option to work with a local real estate agent who can get me turnkey properties before they go on the market at slightly below market value. An example deal would be a $199,900 property that I could but $40K down on a 4.1% 30-year term, with a HELOC of 1.99% year one and prime+.29% margin for the draw period. Rent at $1600 in a great part of town (yes, below the 1%, but projected to increase in value in that part of town), and cash flow of $200-$300 after paying the mortgage and HELOC payments.

2. BRRRR Strategy in a different market. From everyone that I've talked to, Nashville is so hot that it just doesn't have any legit BRRRR properties left. So I'd look at doing a BRRRR deal in an area outside Nashville.

The only thing I'm worried about is having my HELOC tied up in a property for the 8-10 years it would take me to pay down with the cash flow from the rental. I'd rather be able to reinvest it after doing a cash out refinance, but I'm wondering if it might be good just to get one property that cash flows under my belt here in Nashville before branching out.

Thanks for any insight or advice you might have!