All Forum Posts by: Rabia Khan

One way to buy real estate for cash flow without using any of your own money is by using the "BRRRR" strategy (Buy, Rehab, Rent, Refinance, Repeat). Here's an example:

• Buy: Find a distressed property selling below market value, often through motivated sellers, auctions, or foreclosures. Instead of using your own money, you secure financing through a hard money lender or a private investor. These lenders typically cover the purchase and rehab costs because they’re more focused on the value of the property than your personal financials.
• Rehab: Use the borrowed funds to fix up the property, adding value by making necessary repairs or improvements. You now have a higher-value property that is ready to rent.
• Rent: Once the rehab is complete, rent out the property to generate monthly cash flow. The rental income ideally should cover your expenses, such as the mortgage, taxes, and maintenance, while also leaving you with positive cash flow.
• Refinance: After the property is stabilized and generating income, you refinance it with a traditional mortgage. The new loan will pay off the hard money lender or investor. Since the property has increased in value due to your rehab efforts, you can often refinance for more than what you originally paid, recovering your initial investment.
• Repeat: After refinancing, you've effectively used none of your own money, but now have equity in a cash-flowing property. You can repeat this process with another property, continually building your portfolio.
  
  I hope this helps!
• Best,
• Thomas

Do you mean a unit? Like one condo? or an apartment complex.  Either way, the answer will lie in if the deal makes sense and makes you money.  I look for both cash flow and appreciation.  Some investors just focus on one of those. You need to decide what you want. But for sure buy a rental as a first investment - yes to that!