BRRRR Strategy Questions and Some Clarification

[Joshua Herald]

I have been standing on the sidelines watching many of my Cincinnati REIA counterparts make their way in Real Estate. The unknowing of it all tends to turn me away but I keep coming back. This time it is for good. I am currently looking for my first multi family and have a question about the BRRRR method. I understand the perpetual nature of this strategy and the struggles with finding traditional refinancing options once an appraisal is done and you want to pull all of your equity out. My question is related to the very first renovation costs. I was listening to the BP Podcast 197. There was a guy who used this strategy to purchase a large number of units over a short period of time. He however started his whole process with small loans from family and friends.

To most people (NON REI) my life is pretty good right now. I have a good Job, my wife has a good job. We make more than we spend but I am a slave to the 9-5. I could start to save up but I want to think creatively and fund my first rehab another way. What suggestions do you have?

Also, in that same podcast, there is mention of the 2% rule when evaluating properties on the MLS (his strategy). What does this mean? Is it similar to the 70% ARV number?