Some Issues with Real Estate

[Waleed Asad]

Hi so I'm a beginner investor and have ran into some roadblocks.

(1) Me and a neighbor who is also a contractor are wanting to invest 50% each in real estate, not to exceed $30K each. So total 60K.

(2) My credit score is only 550, 610 if I pay off 3K of my debt, but I'm hearing it will be difficult getting a loan unless my score is above 720. My credit history is only 2 years old.

(3) In this case, I've thought about the BRRR method, where we pay for a property in cash, fix it up and refinance to put a down payment on another house. However, this would require me to quit my job which I don't want to do yet.

Maybe in 2 years when I'm making enough to be able to quit my job, and enough in savings to invest in a new home with partner.

What is the best thing I can do with our money of $60K?

Sidenote: let's say you buy a fixer upper for $40K, fix it up for $8K, now the house is worth $80K.

Also what are the advantages of BRRR vs Traditional?

You refinance it and take out a loan to purchase a second home. 70% of 80K is $56,000. So you buy another fixer upper for 50k, fix it for 6K, and refinance again to buy a new home.

This is how BRRR works, right? Am I describing it correctly?