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Updated about 4 years ago,
BRRRR or Traditional financing for first deal
Hello,
I want to start investing in Real Estate. I am 24 years old, I live in San Francisco, and I have a cash budget of around $25,000 so I am looking out of state. I have spent alot of time researching markets and my current frontrunners are Memphis TN, Jacksonville FL and Huntsville AL. I have been looking at properties and am so far unsatisfied with rent ready traditional financing options. I have also been researching BRRRR strategies using hard money loans which seems much more attractive to me given that I am very willing to do more work to get a better cashflow and returns. I have two big questions at this point.
1) Is it foolish to take on BRRRR as a first deal? Would it make more sense to cut my teeth on a less juicy deal using traditional financing and ramp up from there?
2) Is BRRRR feasible out of state? I would think finding a trustworthy GC out of state would be very difficult. Do people on BP often give GC recommendations?
Thank you for reading this and I hope to get lots of good feedback on these questions and anything else. Please poke holes in my assumptions or thought process!