Investor advice for newbie

[Emily Lee]

Hello, first time poster and new investor here. I have read several books and done a lot of lurking here on BP 😊 my husband and I would like to get started with SFR rentals or small multi family rentals. My original plan was to save up money over the next year to pay cash and use the BRRRR method, however we have looked at a few properties and have considered just buying property with a conventional mortgage if we find a good deal in the area we like (we have enough saved for 20% down and light rehab). Our primary long term goal is just to create some extra passive income, we both have careers otherwise that we do not necessarily want to quit. My (potentially dumb) question is, is it possible to use the BRRRR method if you buy the property initially with a conventional loan? I know it's not the *best* way to BRRRR, but if we could refinance and at least pull our down payment back out it would help us keep the ball rolling. Any and all suggestions would be greatly appreciated!

[Young Park]

@Emily Lee Welcome to BP and congratulations on making the first step by introducing yourself and share your goals. 

What market are you currently in? If it's not in your area, what area are you considering?

It's not a dumb question, but trying to purchase a potential BRRRR property (aka distressed) with a traditional down payment may not make your offer stand out vs an all-cash offer that doesn't have the financing contingency. Also, you would have to close twice (at purchase & at refinance). But this doesn't mean it's impossible and I've seen some people do it successfully here on BP.

I raised capital to fund my deals so that I can BRRRR using cash.