BRRRR advice for a new investor

3 Replies

Hey everyone,

So I'm in the research process right now what niche I want to experiment with first in my real estate investing career. I am in the process of doing a cash out refi on my primary residence so that I can have some capital for investing. When all is said and done I will have right around 45-50k of capital to work with. Originally I was looking into buying an out of state, turn key, MF property to get a good base knowledge of the process and have a solid investment to work up from. However the BRRRR strategy has me extremely interested. The thought of being able to take my 45-50k and invest in a way that I can refi that money back out in about 6 months seems like a definite win-win. I'm looking for some advice from someone who has experience in these scenarios. I currently live in southern California so I'm still leaning toward investing out of state either way I go. Unless someone can give me some pointers on how to stay in state AND in my budget. Additionally, if I do go out of state what are some good areas to look into for BURRR investing ? I'm all for researching an area and figuring out what rent and comps are, but I don't really have a way of narrowing the search.

One last thing, I have read a ton of posts about the BRRRR strategy but I haven't found the source reading on it. Is it in a specific book that I need to pick up? or a specific podcast ? Id love to get the info straight from the horses mouth.

@Phillip Troutman

here are a few good blogs from Brandon and Andrew. @Brandon Turner coined this term. I am not familiar with Southern CA but it would be tough to buy cash and rehab with $50K capital. If you have some experience rehabbing, you can leverage that to get a HML.

https://www.biggerpockets.com/renewsblog/2016/06/3...

https://www.biggerpockets.com/renewsblog/2016/06/1...

https://www.biggerpockets.com/renewsblog/2015/09/3...

If you're looking for TK out of state, it's very tough to do a BRRRR strategy on TK.

Thanks @Chris T. . I appreciate the blogs. Yea to clarify, I WAS considering just doing turnkey for a normal buy and hold property. Now that I know a little more about the BRRRR strategy i'm leaning more that way.

Bad idea to cash out refi on your primary residence. Good idea to HELOC your primary residence. The interest rate would be lower, the loan process and approve would be easier and the amount given would be much higher with no closing cost.

Just pull out all the money from the HELOC if you need all the cash.

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