Looking at First BRRR

[Brock Maggard]

I'm ready to buy my first rental property, but I would like some advise from people who have actually done it. I'm afraid that I will make a mistake due to lack of experience. I am wanting to use the BRRR method.

I can buy the house for 14,000. Despite the price, It’s not a ghetto neighborhood. I’m buying in my small midwestern home town with a population around 4K people.

It is liveable but needs some work. I have the cash to buy it and do basic rehab. I should be able to get $500 per month rent. I would then want to take out a mortgage on the property. After rehab I was thinking I could probably cash out refinance what I had spent on the property and purchase another similar property and repeat.

I don’t know how to begin figuring rehab cost. I walked through house the first time last night and it just seems like paint, flooring, doors and stuff like that. 850 sq ft, 2 bed, 1 bath, attached carport, nice yard.

Im guessing a mortgage payment around $300 per month with taxes and insurance, which would give me a $200 per month cash flow with very little out of pocket.

What am I missing. What do I need to know about buying a house with cash. Will it be difficult to get a mortgage on a rental property that is that cheap?

Any advice is appreciated.

Thanks