Getting my first deal first time home buyer.
1 Reply
Ozzie Rodriguez
from Red Bank New Jersey
posted over 2 years ago
I want to increase as much as l can the value. Can first time home buyer use the BRRR method?
Gavin Welch
Real Estate Broker from Lakeland, FL
replied over 2 years ago
Yes, you can buy a home occupy it, then rent it out and purchase another. Be careful, that you don't over-improve the property as your residence then have a rental that gets trashed because you have high-end fixtures ect. Make it nice, have curb appeal, decorated nicely, ect.
Be aware that when you go to buy your second property to live in the bank is going to most likely require you to put 20% down. I have had some clients that moved out of house A, got a cheap rental, snowballed cash, and had good rental numbers on house A, so when they went to purchase house B they have good cash flow, proven rental history and a pile of $$$ to put in the loan.
Also, consider the "house hack".. Buy a duplex, live in one side rent the other, then buy a second property for yourself and rent both sides of the duplex.
Good Luck
G
Be aware that when you go to buy your second property to live in the bank is going to most likely require you to put 20% down. I have had some clients that moved out of house A, got a cheap rental, snowballed cash, and had good rental numbers on house A, so when they went to purchase house B they have good cash flow, proven rental history and a pile of $$$ to put in the loan.
Also, consider the "house hack".. Buy a duplex, live in one side rent the other, then buy a second property for yourself and rent both sides of the duplex.
Good Luck
G