First Investment Strategy

[Andrew Scherz]

Hey guys,

Super excited to be joining BP and looking forward to my REI career!! I'm still in the gaining knowledge phase, but my goal is to make my first investment by the end of the year. My direction, at least at first, is going to be investing in rental properties. My girlfriend and I plan on moving in together and she is onboard with my newly peaked REI interest. If I was making this post a few years back, I would certainly be leaning towards the House Hacking method, but I don't think she'd go for living in a duplex/triplex with other tenants, and considering we have two Australian Shepherds.

Anyway, this is where my head is at for our first strategy: Buying our first live-in home as a fixer-upper and kinda/sorta implementing the BRRRR strategy. Once the rehab is complete, we can then refinance the home, hopefully covering our initial loan and rehab costs. Once we find a new (longer-term) home for ourselves, we can then rent out this property and start generating cash flow, leaving us with our first investment property!

I know it's a pretty vague strategy but these are just my preliminary thoughts. Let me know what you guys think and if there are any holes in my strategy that I'm not thinking about.

Any and all input is welcome!

[Kyle Spearin]

@Andrew Scherz I think you're on the right track? Are you looking to get conventional financing or exploring an alternate route? The reason I'm asking is because many banks won't lend on heavy fixer-upper, BRRRR properties. However, you should investigate the 203k (from the FHA family) loan through this website and with others who have used it, this would allow you to incorporate rehab costs into the sale of the home.

Another option is to find a cosmetic rehab. This might mean buying a structurally sound house, but with horrible paint colors, carpet, etc. All the things that are off-putting to typical buyers. You will probably get a deal on something like this and be able to get conventional financing.

Good luck!