First Time Home Buyer - BRRRR Method

[Roger Pharn]

Hi Everyone,

I've been reading some books and doing research to get into rental property investing. My extent of real estate knowledge and construction is only in the books I've read so far. However, my priority at the moment is to purchase a home that I could live in. Ideally, I'd like my first home to be a property that I could BRRRR and therefore build equity and repeat the processs for rentals when ready.

I'm aware of creating a team of a core 4 (Deal Finder, Lenders, Contractors, Property Manager) but this is easier said than done. I'm hoping to get some clarity on questions like if I should find the deal first then reach out to a lender or vice versa. Should I have a list contractors already before even purchasing the home?

Common logic seems that I should be pre-approved and have contractors available before purchasing the home. However it seems like I would understand the scope of work better and the type of lender I would need if I find the deal first.

I'm open to any step by step recommendations to buying my first home/BRRRR property. I appreciate any help!

[Dani Beit-Or]

In the ideal scenario:

1. You qualify for a mortgage 
2. You find the house
3. Make an offer (+include your pre-qualification letter)
4. IF/when accepted - during the inspection period you bring GCs to give you bids 
5. Based on the bids and an inspection report you can determine what to do next - proceed, terminate?

If you plan to live in it why do you need a property manager?

Few suggestions:

• Make sure you have a scope of what you want to be done in the house before you bring GCs on site
• Try to have a longer inspection period (14 days, or more) you will need it to have time get GCs and your scope.
• These days on a new listing 14 days inspection period is VERY long - maybe try to tackle houses sitting on the market longer.
• Hire a project manager and/or a designer to work with you - unless you carry that ability or doing a lower-end home. 

There is much more to it but wanted to give you some direction.