Advice: BRRRR vs. Traditional Financing

[Johnathan Whiddon]

I am new to Bigger Pockets. I am working on deciding which strategy to pursue for real estate investing. I have an amount to invest which will likely not be enough to purchase and rehab a property in the DFW area where I am located. 

The BRRRR method is appealing because it allows one to scale quickly by purchasing a home in cash, rehabbing it to build equity/force appreciation, and refinancing after a season period of 4-6 months at ~75% LTV of the finished home to allow you pull your capital out of the deal to roll into another property. You can then repeat the process. I am sure many of you have read David Greene's book about Buy, Rehab, Rent, Refinance, and Repeat, which I would highly recommend.

I could also put down payments on several homes and use traditional financing to start building equity and cash flow now, but would have to wait longer to to purchase additional properties. Does anyone have any additional suggestions on routes to take to build a portfolio?

[Andrew Syrios]

I would recommend the BRRRR strategy if you can do it. Your cash flow might be a bit less, but you'll have more cash on hand than when using traditional approaches if you need it to make up a short fall and in addition, you'll be able to jump on potential deals more easily.