New investor here looking to make first investment.

[Rahul P.]

Hello to everyone!

I have been following up the content here and on youtube which has been really insightful. I am finally ready to take a plunge on my first investment. But I am still not decided on strategy or market. I am currently divided between straight up SFR or use a BRRRR.

I am not looking to house hack as I am already well established in Phoenix metro.  My main objective is generating a cash flow which pretty much eliminates local market.  I have been researching on  several markets but not yet close to deciding on one. 

Any or all suggestions are welcome. I am open to connecting with experts and also growing my network. 

[Melissa Justice]

Hey @Rahul P.,

Great REI props can be found in various markets, particularly in the Midwest and Southeast regions of the U.S. These areas not only feature affordable purchase prices for many investors but also offer turnkey homes—either newly constructed or fully renovated—ready for tenants. These properties often have systems with about ten years of life left and are situated in neighborhoods with appreciating property values and rental income.

The cash flow from a property largely depends on your down payment. A lower down payment might lead to a break-even scenario or even negative cash flow. However, some investors embrace this strategy, especially if they want to minimize their upfront capital and plan to refinance within a few years—particularly with ongoing discussions about the Federal Reserve potentially lowering interest rates into 2025. The good news is that with the right approach, you can also achieve positive cash flow in these markets.

Ultimately, success in real estate investing hinges on selecting a growing market, a desirable neighborhood, and building a strong support team. Navigating this journey alone can be time-intensive, so partnering with a reputable team can make all the difference. That is what our team at Rent to Retirement has been doing for the past decade with BP. I'm here to answer any questions you may have about analyzing markets or getting started. Most importantly, choose a market that aligns with your investment goals for the best results!

Wishing you all the success!

Melissa Johnsen
Rent to Retirement Investment Strategist