Does a BRRRR work out for a Newbie?

[Kenny Colato]

Hello Guys, I’m Kenny!

Like many of you, I am very interested in Real Estate and had some questions towards this:

How does a BRRRR sound for newbies? - I am currently thinking of starting my first deal as the BRRRR strategy as a newbie but I'd love more insight towards this topic from people who've done BRRRR's before.

In my situation: I live in South Los Angeles, and to buy a property here is pretty expensive. I'd love to purchase a property here, in the near future when I have equity from some of my future properties, but for now, it's looking kind of green. Anyways, I have been looking in Northeast Indiana, towards Gary but that market is kind of dangerous, but I'd like to go to the expensive side of Indiana to build equity and gain appreciation as well. It may be near to impossible to gain appreciation in Indiana (since it's known for cash flow) but I can maybe force appreciation on some of the more high end properties because I will be using the BRRRR strategy.

I am currently 20 Years old, and have some capital ready to get started, but there’s one thing…

I am currently self employed, projecting to make a little under 6-figures this year, and also next year. I have spoken to some lenders and they say it’s really difficult to get a loan because I am self employed.

Banks require at least 2 years of tax returns and want your DTI to be less than 50%. I currently have no debt under my name, thanks to reading rich dad poor dad, and am set to live off of Real Estate Investing.

I’d love more of your insight, any comments or suggestions would be great,

Thanks!!