Hello my name is Charles. I am from Cleveland Ohio. I am new to real estate investing. I have been studying BP material for a few months now. My goals are to purchase my first rental property in the next 12 months and replace an income of 100k per year over the next 10 years.
There are a lot of trendy sections of Cleveland that are up-and-coming And I would like to find a multi-unit properties to fix up and rent using FHA 203k loans w/ home hacking. Any and all good advice and slight nudges in the right direction would be greatly appreciated.
Welcome Charles! I'm not personally familiar with Cleveland but the multi-family house hack while fix and renting is a good strategy. I'm currently using the BRRRR strategy with my properties (since I am still trying to build momentum as well). This method definitely helps to "keep the ball rolling" as you can pull out the money you put into a deal. It takes a couple extra calculations at the beginning and can sometimes be hard to estimate an appraisal amount but as long as your close you will at least be able to get most of your money out of a deal.
Good luck with getting started in real estate investing!
Welcome @Charles Scott. I agree with @Benjamin Seibert. Your strategy is a good way to get started and preserve as much capital as you can while you build momentum. We recently transitioned from SFRs to small/mid size multifamilies but will still be using BRRR principles. I do like how quickly you can execute a BRRR strategy with an SFR (especially with creating ways of avoiding standard seasoning requirements) but the extra value add control for multifamilies (5+) is appealing. We've had relatively good success hitting our appraisal targets for SFRs but I always disliked how dependent we were on comps/residential market conditions versus proactively increasing income/decreasing expenses.
Hello my name is Charles. I am from Cleveland Ohio. I am new to real estate investing. I have been studying BP material for a few months now. My goals are to purchase my first rental property in the next 12 months and replace an income of 100k per year over the next 10 years.
There are a lot of trendy sections of Cleveland that are up-and-coming And I would like to find a multi-unit properties to fix up and rent using FHA 203k loans w/ home hacking. Any and all good advice and slight nudges in the right direction would be greatly appreciated.