If you are open to non-traditional methods of financing, you could use a debt service loan to bypass that requirement.

Make sure to communicate your BRRRR strategy with your insurance agent so they can recommend the right coverage for each phase.I learned this lesson the hard way: https://www.biggerpockets.com/forums/853/topics/1222933-my-b...

If you end up at out-of-state but have capital, you likely be on a turnkey solution.If you are starting locally, that may be wholesale, brrrr, flip, buy-and-hold, (STR, MTR, LTR), and more. 

What alternative method(s) would you recommend for beginners? 

You may have to switch to owner financing or BRRRR if that is available or some other strategy when the time comes. 

.✅ Indirect Expenses (Office Overhead, Admin, & Labor): Harder to allocate, but common methods include:2) Common Billing Methods🔹 % of Gross Rents – Many PMs charge 3-5% for admin overhead.🔹 Per-Unit Fee – Flat $10-$20 per unit/month for shared costs.🔹 Time Tracking – Track staff hours and bill properties proportionally.🔹 Software Tools – AppFolio, Buildium, Rent Manager allow bulk allocations.3) Best Practices✔ Use a Spreadsheet or Software – Track expenses by property before invoicing owners.✔ Be Transparent – Define billable vs. included costs in your PM agreement.✔ Avoid Surprises – Owners expect clarity on additional charges.

Purchase price: $350,000 Cash invested: $11,500 With the proceeds of the sale of our first fixer upper we purchased this duplex which we moved into one unit and same month purchased another duplex in another town to BRRRR.

The after-repair value determines if the property is a good BRRRR or flip.

Any other pros or cons to this method of investing for at least getting started? 

There are plenty of people looking to deploy cash into real estate but don’t have the knowledge or bandwidth to run a successful flip or BRRRR.