Newbie Investor in Southern California

[Monica Sutton]

Hi everyone. Another newbie here looking to get started in real estate investing. I stumbled across BP a few months ago and have to admit that I may be burying myself in books and webinars, getting excited with all the different opportunities that are out there. As I was starting to feel overwhelmed with all of this great information, I decided to take a step back and really think about where I want to start. I’m thinking passive income through rental properties might be a good place for me. Since I live in California, it’s no secret that properties out here are not cheap. Even though long distance investing does sound a little daunting, I believe that might be where I could have some luck in getting that positive cash flow.

Ideally, I think using the BRRRR strategy might be the most profitable for me, but I also believe that going with a turnkey rental might be the easiest way for me to get started. With so many experienced investors here, I was hoping to get some opinions on whether or not you would recommend a beginner go ahead and start out with a turnkey rental, or should I hold out until I find that great deal and put in the extra effort to rehab and rent out on my first deal? If I was to go with a turnkey, what are some of the cons (other than a potential smaller cash flow) that I should be aware of?

[Kiera Underwood]

@Monica Sutton for a first time investment I'd consider something less than a BRRRR. I think that developing a relationship with a team on an investment that's a bit more straightforward might be a good interview process for a team.

With a BRRR the numbers can look great, but there are often surprises behind the walls. If you've not seen how a team handles an easier deal you're putting a lot of blind faith into a team that's going to have to handle a deal where there will likely be hiccups.

I say dip your toes in, take on something safe and get comfortable. Push for a more ambitious move once you've got a property or two under your belt!