All Forum Posts by: David Avila

@David Avila, I started out all cash (and actually am just looking at getting to loan for leverage).

The reason I started out with cash is because I wanted to start slow, not leverage myself while I had the largest learning curve and if I made mistakes, I would be able to absorb them. 

I would advise someone just starting out to partner with an experienced flipper or contractor who is willing to put some skin in the game (they can pay for the rehab cost or defer their payment until the property is sold or completed in exchange for some equity). This pay lower your overall profit, but will be a huge benefit in the long run.

Once you feel comfortable, you can then buy a few properties yourself, rehab, rent, renovate and repeat - the BRRRR method mentioned above.

You can start with cash now, get better cash flow and refinance in a year when the property is seasoned.

As for how much money you should allocate - that really depends on your neighborhood, your financial situation, goals, etc. 

Personally, I would stay away from very low income rentals when you are starting out - minimize your headaches while still learning.

Good luck.

Welcome David! I'm also in Los Lunas, and work as a Realtor out of Albuquerque. My broker does property management too.

Welcome to BP from Santa Fe, NM!