First Rental Property!

[Kyle Madden]

Hi everyone , please need some help/guidance! I am NEW investor in Vancouver BC. My strategy and goal is a LONG TERM RENT AND HOLD, SINGLE FAMILY HOME. I have read David Greens BRRRR strategy book and Rental Property Investing by Brandon Turner and have listened to BP podcast tremendously. I want to complete the BRRRR strategy however prices in BC are FAR too extreme. I have about 300K ready to go to buy a house cash out of province, (250k purchase, 50k BRRRR is what I figure). Can I have tips / guidance on investing out of province? I'm a little nervous to make my first investment out of province, which limits my sweat equity into the house/ being there to resolve issues. Any help would be greatly appreciated!

[Chris Baxter]

@Kyle Madden  welcome to BP.  Investing out of town isn't a huge issue as long as you take the time to build and vet the team that will be your boots on the ground. I would also strongly advocate  that you go to your chosen market and stay there for a few weeks to get the lay of the land. 

I'm not a fan of your strategy of dumping $300k into a starter home as a long-term hold. Are you planning on refinancing to pull your equity back out? You'd be better off using $200k down on a larger property (possibly a MF) and adding value with the rest of your cash. REI is all about leverage. Cash purchases are for flip or riskier deals.