How to find first property for BRRRR

[Nicole F.]

Newbie question about finding a BRRRR property and managing risk. Based on all of my reading here on BP, it seems that everyone who posts about a successful BRRRR found it through direct marketing or wholesalers due to the competitiveness of the market. What I'd like to understand about those methods from people who have used them is - how do you think about the risk involved by not having the protections of a traditional real estate transaction? As I understand it, whether you are buying a house directly from a distressed seller or a wholesaler, there's no typical inspection contingency because if the seller wanted to deal with that they'd just go to the MLS and get the highest possible price for very little extra delay. Do you actually buy a house just based on a walkthrough with a contractor, and have no idea of whether it has foundation issues, needs new plumbing and electrical, or any of the other really large items? How do you account for that in rehab estimates? Seems that those items alone could swing it $20-$30K.

Thanks in advance for your input. I'm having a hard time wrapping my head around the fact that so many first timers are going the riskiest route when buying properties. I have no experience with construction or real estate, and despite trying to learn all I can, I don't know if I'd ever be comfortable buying this way.