Just Starting Out and Looking for Advice

[Michelle Sanchez]

Hi I am new to the BP community and am looking to get started. I have been specifically looking into fix and flips and multi-family rental properties via the beloved BRRRR method for cash-flow. A little about myself, I am a nurse who travels between the East Coast(PA and NYC) and Los Angeles CA. I have never owned a home or property due to my travels so I would technically be a FTHB. I am looking to invest in the Lehigh Valley Pa(Allentown, Bethlehem, Easton) area as well as Philly. All that being said I have some questions on how to possibly get started.

1: Since I have never owned a home I was thinking of house hacking a multi-family with an FHA as my intro to REI. My concern with this is I travel for periods at a time for my job. Although this would be my primary residence I would be in L.A. for a portion of the first year requirement. Would I be able to STR my portion when I am away. I am clearly concerned with inadvertently committing any type of mortgage fraud, but also don't want an empty unit that can be generating cash flow for me when I am away.

2: Would it be wiser to get a few fix and flips under my belt via HML/Private Lenders to build liquid funds and then use that to start investing in multi-family rentals via Brrrr

3: Lastly, do many of you use HML for your initial purchase of a Brrrr property? If so have you found it hard to get lending without holding the property in an LLC(or other holding entity) and without experience? I ask because most(that I've researched) residential lenders will not cash out refi on property held in LLC. And I have found that many HML prefer your property be in LLC and that you have investing experience.

I thank you all in advance for any guidance and advice and I look forward to learning from and hearing all of your experiences. I am also very interested in networking with agents, mortgage brokers, contractors and other investors in the Lehigh Valley/Philadelphia area. So please feel free to message me. 

[Sheryl Sitman]

Hey there @Michelle Sanchez  welcome to the exciting dynamic investing world! Your post caught my eye since you mention markets that I am heavily engaged in. A few quick tips and thoughts for you:

- I caution you to try to mix too many goals into one investment/purchase - a place to live, a LTR, STR all wrapped into one will send you shooting wildly in all directions.

-Getting flips under your belt -- I am not sure why you think it may be a good first step and maybe I am wrong. But flipping is really really hard and much less forgiving than Buy&Hold. Forget everything you have ever seen on HGTV. Add to that that everything in Lehigh Valley has been going for over asking at numbers that don't often make sense. Seasoned flippers often lose money so I never understood how novices think they can jump in and have a risk free profitable first project -- sorry for being harsh but why bother saying anything if it is not the truth :-) 

-STR in Bethlehem is not allowed. I think you can STR a place you live in but check that out before basing a decision on that plan. ANd STR in Philly is up in the air right now with legislation coming that will wipe it out (it is being fought)

-Philly and LV are two vastly different markets - each with many micro-markets. There are tons of opportunities and tons of people trying to get a piece of the action right now.