Deciding on the right strategy

[Paul Wakim]

Hello everyone, I am having some trouble figuring out what strategy I should use as I begin my search for my first deal. My goal is to build a large business that cashflows as much as possible in the future. 

I have $50,000 in investor capitol to work with. I am stuck between a few paths and would like some advice on what you think I shoud do with the $50,000.

So there is no shortage of homes in my area that are possible candidates for the buy and hold strategy. The problem I am facing is how to go about aquiring the properties to meet my long term goal.. 

I can use my investors capitol to open a few small mortgages and purchase properties that are ready to rent and could cashflow $300-$600 per month right from the start, but with very little appriciation due to thier poor location. I calculated it out and I assume I could aquire 3, maybe 4, properties all in this way with my invstors capitol. If I were to continue this process after having used all of this ivestors money I would need to find other outside sources of money and repeat.

Or I could do the BRRR stategy and purchase a single property in a nicer area of town with all most all of my investors money, rehab it, rent it, and refinance it to get my investors money out. In this situation however, I am faced with the chalenge that once the properties are refinanced (at a the higher value) the monthly payemnt on the loan will be so large my cashflow will be $100 or less. The properties that fit this description are not only low cash flow but they have been very hard to find over the past few months where as properties that fit the first senario are not hard to find at all. Additionally, I will have to use a portion of the investors funds for the down payment on the mortgage. BUT, I now have a majority of my investors money and can go do another house in a similar way.

My "problem" is cashflow, I am having a very difficult time desiding if I should opt for more cashflow from the lesser quality properties that will not appriciate much or do I opt for less cashflow, nicer properties that will appriciate, pay my investors back a majority of their money and have the ability to do another property?

My investor is a family friend who is not concerned with getting a large return on their money immediatly. We have agreed on an interest rate that is good for him and great for me.

I have considered the fact that I could always go with my first or second option and find more investors but Im very new to this and dont exactly know if that is a good idea to involve more poeople. 

Thank you in advance!