The Plan.

Since my last post, I've come up with what I think is a solid plan to move forward. If you're reading this and have any criticism or advice, I'd love to hear it.

In listening to the podcast, I've heard Brandon say several times he's a big fan of the BRRRR plan. This stands for

Buy - Buy a distressed or undervalued property anyway I can. I'll probably end up using a simple FHA loan on a four-plex in a few months when I get to Maryland.

Rehab - I'm going to start looking now for a contractor I can trust who works in my investment market. I'll be looking for someone who will work with me for years to come, so if anyone knows a good one in the DC area, I'd love a referral!

Rent - After flipping the property to myself, I'll rent out the other three units and bring up the value and cash-flow of the property.

Refinance - With the forced appreciation from the rehab, I'll refinance the property and liquidate as much equity as I can from the property.

Repeat - With a pocket full of cash, I'll look for the next deal and recycle the down payment money I put on the house originally as well as the after-rehab cash to look for the next deal.

I've listened to a lot of podcasts where people have had a huge jump-start using this method. It does seem to me to be the best way to start quickly and begin with a nice little portfolio.

In the mean time, I'll be saving up money to make the first purchase. If I can, I'd like enough to be able to buy one property with 20 percent down and another property with an FHA loan simultaneously. If I can, I think it would be an awesome setup to buy two  four-plexes within walking distance of each-other this way to have a total of 7 units and one we live in. This would definitely be trickier because not only will we have to come up with the down payments on two properties (maybe like 25 percent of the total value), but also enough rehab money to be able to cover all the needed repairs. Time will tell what we're able to do.

While I'm stuck here finishing up school in Utah, I've began networking here on BP to find people who need bird dogs. Now that I've got the basic plan in shape, I need to make sure I'll be prepared to recognize a good deal when it floats along, so I think that working for someone who already knows how to evaluate properties should get me there.

I think I've got a pretty good plan, let me know what you guys think!