Advice for BRRR Investing

[Robert Gomez]

My wife and I are looking to move to Dallas, TX. Originally, I wanted to purchase a multifamily but there does not seem to be many on the market right now. Therefore, we are looking to purchase a home to move into first before our first investment property. 

With this in mind, would I be able to BRRR our first home purchase event though we won't be renting the property after we rehab the property?

[Andrew Postell]

@Robert Gomez thanks for posting.  Dallas is very popular right now - and for good reasons!  Less expensive, good job market, low income taxes, etc.  Lots of good reasons to move here.  I moved here about 10 years ago...there's always things I miss about other places...but for the most part very happy that I am here.

Buying your primary home has some very good benefits to it.  Low down payment, lower interest rate, etc.....and those things are not available to us when we purchase an investment property. That's why we use the BRRRR method on investment properties. If I could buy an investment property with 5% down (or less) then there's no reason for me to use the BRRRR method. And that's what I would tell you here. Just take a standard loan, buy a house that needs no work, and call it a day.  Don't get me wrong, that will be hard enough to do right now.  But it's still easier than trying to find a property to BRRRR.  If you buy an investment property and need 25% down or doing the BRRRR.... then I'm doing the BRRRR method.

Generally speaking land is so cheap here that there's no reason to build multifamily properties.  That's why there's so few of them.  You might see houses on an acre of land in some parts!  That's crazy talk in California (or at least $10million) but here that's no problem.  We also tend to focus on homes that have 3 bedrooms and 2 baths.  Try not to go over $300k on the value.  The lower the better actually.  So if you are going to buy a home to live in for 1 year, then move out and turn it into a rental, that's the price point and home type I would tell you to focus on....if you can.  Those make great rental properties. 

Anyway, very excited for you.  Feel free to post anything else that you may need.  Thanks!