Whether this is from in experience, desperation, or being malicious to make a paycheck depends on the wholesaler. 

Forgive my inexperience but is it possible to use the BRRRR strategy on a turnkey property?

Sometimes lenders have higher rates for inexperience or risky endeavors but if it’s stabilized or slightly under market that rate is high.

However, the new house is more expensive so it will add approx $1K to my monthly paymentsMy question: For those who have done out of state BRRRR deals, do you think it's wise to pursue option 1 given my inexperience or go with option 2 to get a feel for RE investing.

Take of that what you will, but I'd say demand isn't going to shrink whereas supply will slow due to inexperience, rates and home prices.

While I am pretty confident have everything I need, I am sure that there are a lot of factors that I have not accounted for due to my inexperience in this field.

Don’t let your inexperience deter you if this is really what you want to do and don’t wait around for a mentor....you do need one.

But things are getting tougher, and inexperience is causing money loss even from those who might have been making money previously, but now only the ones who knew how to bargain and ensure every single thing was fairly priced (which almost nothing is right now) are still making decent profits. 

@Nathan Ewert , every rehabber out there had a first rehab that they were scared of screwing up, because inexperience is intimidating.

I know they can sense my inexperience.