New to buy and holding strategy

[Account Closed]

Hey BP, this is my first post and my first day on BP. I am a very interested real estate investor who wants to dive into the buy and holding strategy. I've always told myself I'd like to own property ever since I started high school because I knew it's the best investing option you can do. I currently live in Baltimore, MD which is one location I'd like to look into but the other one is Fort Myers, FL where I am more familiar with the location. I don't have much money saved up since I've been paying school debt first. I was wondering how do I jump into this BRRRR method with little to no money? (Looking for connections and some networking possibilities)

[Allen L.]

If you have limited resources and loans to pay off, you could consider a combo house-hack + delayed version of the BRRRR. You can try getting the FHA loan to get into your first home as mentioned by others, and then house hacking by renting out the other rooms of your home. This will help you save up money to do a rehab, after which you can then do a refinance or take out a HELOC

Sure, there’s some risk to refinancing later if property values go down in the near future (I.e. might not be able to pull as much cash out as you might think), but I think having roommates to pay a good part of your mortgage for your primary residence, in the city that you live in, would be a great way to get started especially if you plan on buying and holding.