Investment Strategy Opinions

[Brody Veilleux]

I have an exhaustive list for my investment strategy and I'm looking for second opinions. The general plan is to BRRRR a duplex and rent one unit while living in the other. Then using the recoup to fund my primary residence BRRRR to then fund my transition into SFR BRRRR. My plan is to get a primary residence as quick and efficiently as possible while also staying on pace with other investments.

1. 1. Save up ~$10k in HYSA emergency fund
2. 2. Use full HYSA budget to fund ~$30k house hack funds (about 12 months)
3. 3. Put 3.5% down FHA, on a duplex (BRRRR), save rest, after closing costs, for reserves
4. 4. Use HML to fund renovations
5. • During this time, pay holding costs OOP (including P&I with PMI), any left over money can be used to build up next savings fund
6. 5. Refi to recoup HML, holding costs (no recoup on P&I w/PMI), down payment, closing costs
7. 6. Rent out a unit and live for the remaining year, likely paying oop for a portion of debt service or operating expenses
8. • Holding costs have been recouped, then save remaining funds, after my oop costs, for remainder of the year or until desired saving fund reached
9. 7. Use recouped down payment and closing costs on a single family primary residence that is similar value of the mfu so the numbers work with a 3.5% FHA (BRRRR)
10. 8. rent out other mfu unit for positive cash flow and move into primary residence
11. 9. Use the holding costs recouped from the mfu to cover new holding costs on the primary residence, and likely pay oop on the PITI with PMI
12. 10. Refi and recoup the same costs (hml, holding costs, down payment, closing costs)
13. • Over the remainder of the year, continue building a new down payment using the recouped primary residence down payment, mfu positive cash flow, and any money left over after primary residence PITI (PMI should be removed after the BRRRR on the property)
14. 11. Once down payment savings reaches ~$60k use $40k-$50k as a 20% down payment on a conventional sfr, and use recouped primary residence closing costs for the sfr closing costs, remaining $10k-$20k goes into the sfr reserves
15. 12. BRRRR the sfr (using the primary residence holding costs to cover the sfr holding costs) and repeat to grow the portfolio