BRRRR deal for first property
Hi All,
I am a new member of the BP community. I am almost 25 years old and have set my first goal of closing my first deal in the next 6 months. I don't have much cash (~$30K) and am unsure what deal makes the most sense for my first transaction. I live in the Hartford area of CT and up until learning about the BRRRR strategy on BP, have really only been focused on an owner occupied Multifamily (3 or 4 units) as I was pre-approved for 5% down up to 275k (more when 75% of property income factored). My investment criteria was that I would need to live for free with a positive cashflow while living there and one year later move into another Multifamily or maybe if I can save another chunk of cash, try to close with 25% down on another 3-4 family Multi. The problem I have with this is the inability to scale and the constraining factor of being tied to one property for the full year plus.
After reading about the BRRRR strategy, I am extremely interested in pursuing this path if this is a reasonable and feasible option for someone with no rehabilitation experience. I realize that I would have a negative outflow since I would have to rent, but the idea of 100% COC return really excites me given my very limited capital. I would really appreciate any feedback pertaining to guidance on my situation and maybe if there are other scale-able options out there.
Thanks!
Jason