Newby Questions on Buying a fixer Upper then Renting

[Mike Collins]

Hi all, I'm such a newby that I even hesitated to post on this forum. That being said, I'm in the initial research phase of what of investing in rental properties.

My generic plan (which is sure to change) is to buy a low priced fixer upper in Baltimore (under 15k), renovate/fix up and live there for a year (or longer), mortgage/rent free, to accumulate funding for another, better rental/investment property that I can renovate and earn income from. Rinse and repeat until I have 10 or more properties, not necessarily in Baltimore. I know this is extremely new and original - right? I know there are pitfalls, unexpected costs etc, but I'm wanting to get an estimate on what renovation/repairs for a fixer upper - even though I haven't actually decided on a property yet. I've seen the estimate or profit tool on the site which is very cool, but it can only account for MY estimate of repair costs, not an actual professional. I'm also hoping to get thoughts and experiences and recommendations from others (good or bad) that may have taken a similar path, hopefully starting in the same area.

Again - I'm new and still combing through the forums, so even the basics are appreciated as well as the details.

Thanks in advance!

[Eric Ramsay]

Hey @Mike Collins I agree with Alan here about the cash cushion, but you may also want to give this David Green article a read when you have some time if you havent read already:

https://www.biggerpockets.com/blog/brrrr-strategy-real-estate-investing

Its pretty thorough and outlines the basics of the BRRRR strategy, which you might want to explore if you have less capital reserves to work with. I'd also recommend attending the free webinars if you havent already (Brandon's 'analyzing a deal in 20min' is particularly useful). I'm by no means an expert being relatively new to the industry myself, but there's a wealth of info on BP that I've been able to learn and I plan on implementing this strategy soon in Harford/Baltimore County. I recently lined up some local hard/private money partners to finance the acquisition, rehab and refinance as well, and am happy to pass along their info when ready if interested.