Would like to buy my first property by using BRRRR method

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@Danny Mittler I'll come at this from a different angle since BRRRR might be different than what you're thinking it is. The idea isn't to get an FHA loan to house hack, it's to find an off-market property that you can rehab and then rent out to a long-term tenant or use as a STR on the backend (highly recommend the latter). An FHA loan isn't going to help you, hard money or private lenders will help you finance a BRRRR property.With $30k saved, you're probably looking at a purchase price around $120-150k max. Certainly possible in cheaper markets like Florida, just might take some digging to find. A local contractor is going to help you with the rehab, but if this is your first project I would recommend partnering with someone who has done fix n flips before so you don't get caught off guard.Once the project is complete, you need to find a lender who will do a cash-out refinance for the property. As long as you qualify (I don't know enough about your background to say either way), the goal is to find a lender who will lend at least 75% of the ARV as a cash-out refi. Some lenders have seasoning requirements (meaning you have to rent it out for a certain amount of time), other lenders like Better.com could care less.It is a myth to think you'll get all of your cash back in a refi, but even if you have some cash left over after paying back the hard money/private lender that's still a win. If the market supports it, again I'd recommend doing a short-term rental to achieve a higher cash-on-cash return. Otherwise if you want more stability and less headaches, find a long-term tenant that can cover your loan payments. Good luck and hope you land that first BRRRR!

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@Danny Mittler thanks so much for posting. We certainly hope you are enjoying the Bigger Pockets website and encourage you to keep learning as much as you can. I think I can break this down a little for you if you don't mind.When purchasing your own primary home you have TONS of different loan options. Maybe you'll have a 5% down option. Maybe a 3.5% down option. Maybe even a 3% down option.....and a lot of times if you are a first time homebuyer you can even take advantage of some down payment assistance programs that will let you bring even less to closing. Sometimes pretty close to $0. Home ownership is pretty difficult but a primary home gives me options.However, when it comes to buying an investment property my downpayment options BEGIN at 15% down. That's a HUGE difference. And my "options" only get worse from there. 20% down and sometimes even 25% down. That's nearly impossible for the average person to save. And that's why the BRRRR method is such a good technique. it makes owning an investment property a possibility for the average person.So if you are buying your own primary home you might have a lot more choices that make it a little easier to accomplish. I hope all of this makes sense.

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There are other ways (partnerships, private lenders, etc.) but I think an FHA loan and living in the property (preferably a duplex or fourplex) and doing a house hack is the absolutely best way to get your foot in the door. Unless they're angel investors (i.e. parents, close friends) private lenders will almost always want to see that you have some experience before lending you their money. So getting that foot in the door is essential and house hacking, particularly with an FHA loan and particularly on a duplex to fourplex is the best way to go IMO.

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@Danny Mittler ohhhh, I think I see what you are asking here. So you will never have a 2 unit property cover your entire mortgage because you are living in one of the units. So in a 3 unit or a 4 unit...you will. Because you have more units. But with a 2 unit, you are occupying 50% of the potential income. So the other unit is going to help with your payment but not cover all of it. Does that make sense how I am describing it?

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Hey Andrew thank you so much !I still don’t have my question here sorry I’m trying to figure it out .. I found duplex in my area in good condition posted for $365,000 for sale If I’ll take FHA loan rent one unit it will definitely will not cover my mortgage and also if I’ll clean and fix some cosmetics needed, after one year if I’ll try to do finance the amount that the bank will give me will not cover the first loan and I will not have an extra cash for the next brrrr property

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in most cases in duplex for example one unit will not cover my mortgage I guess and I will have to find a really really cheap multi family so after one year I’ll be able to refinance and cover the old loan and have some extra cash to get another property …

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@Danny Mittler please research on the investment strategy of house hacking. I cannot advocate this strategy enough to newer investors. Keep in mind, you don't have to go down the traditional route of purchasing a 2-4 unit property, living in one unit and renting out the remaining units. There are many creative ways to house hack, for instance, rent the rooms, AirBNB, STR if the property has an in-law suite. Point being, with current market conditions, you're going to have to get creative. Your first actionable step should be to connect with a real estate agent that has or is currently house hacking. Hope this helps!

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@Danny Mittler - Definitely look into buying a 2 - 4 unit with an FHA. Live in one and rent the rest. It's a great way to jump start your investing. Just make sure all the numbers work before diving in.

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Most will recommend you buying a duplex. Rent one side and live in another. After you build equity then cash out refinance and purchase another.