Deciding on strategy for first investment purchase

[Ignacio Linares]

Hello fellow BP members!

So I'm trying to decide on a strategy for buying my first out-of-state investment property. I have no experience whatsoever in real estate investing. All I have under my belt is I've read several BP books, listened to hours of podcasts, read a ton of forums, practiced analyzing deals, and saved my money for a DP. So my question is, for my first deal should I do a flip, look for property with light repairs for buy and hold, or should I BRRRR?.

Ideally I would like to BRRRR but there are alot more components to it and alot more room for errors especially for a newbie. What attracts me to the BRRRR is the fact that I can keep my money moving and I can ideally keep repeating the process. However if I mess up or anything goes wrong(and I'm sure it will) , I can lose some if not all my money.

If I go for a rental with light repairs, I can afford to make more mistakes, BUT I'm essentially locking up all my seed money and I would have to save for a couple more years before I can buy another property.

If I flip, I can make mistakes as well but I can also keep my money moving.

I'm not adverse to making mistakes, I know that is the best way to learn. I just wish to mitigate my risks and avoid making the biggest mistakes so that my real estate investing career isn't shot down before it even takes off. Any tips or advice please?

[Jeremy Nault]

@Ignacio Linares I think the biggest factor here is your risk tolerance. I personally would not feel comfortable doing an out of state BRRR for my first property, which is why I have started my investing journey with a couple of house hacks. That being said if you have a higher risk tolerance starting with a BRRRR could be a great way to really hit the ground running. Good luck with your investing!