New investor considering different paths

[Adam Porter]

Hi, I am a new investor. I have never done a deal but have been reading a lot and listening a lot about many strategies and methods of investing. Currently I am wanting to get started investing. I have my initial funds lined up for at least a first deal depending on the strategy. The three strategies i am looking at are the follow: 1- BRRRR - this is the most enticing since you could start potentially on a single house and take it one rental at a time but it also seems more time intensive and in utah it seems even more challenging to find a home to buy, rehab and then be able to refi and pull your capital out. 2- house hack a multiplex- I like this because your capital can go further since you don't need as large of a down payment and you can typically get more doors per $$. 3- turn key distance single family - we have talked to a local brokerage, Ron Phillips, which offers turn key homes mostly in the Midwest at better rent to price ratios than Utah. I had a friend acquire two homes from them and has had a great experience but this is the most capital intensive for growth. My goals are mostly focused on cash flow and scalability for growth. Any thoughts or insights welcome.

[William Hochstedler]

House hack a 4-plex. No question. Go as big as you can on a high LTV loan.

You really need to be able to force equity in lieu of a down payment for the BRRR strategy to work. You can't get a 20% equity position with new carpet and paint in this market. Lot of risk for a first timer.

Rather than looking far afield, you may not be able to get as high a cash flow return as the Rust Belt, but Utah has terrific fundamentals (economy, demographics, quality of life), is very landlord friendly, has low property taxes, and a great tenant pool.  This means that it should continue to do well over the mid-long term.

Welcome to BP and good luck!