Multifamily or BRRRR for first time investor?

3 Replies

Hi fellow BP members, my wife and I are very interested in real estate investments, we have seem numerous youtube videos, podcasts and attend some real estate seminars. We have 140K from a cash out refinance and after watching so many videos we are still undecided in our strategy, multifamily rentals or BRRRR? We live in California and we believe our money will give us a better CoC ROI and cash flow basically anywhere else outside California. What would you do?, pay cash for one property up to 100K with a budget of 40K for renovation? or Use the money for a 20-25% down payment for multiple properties?

We are looking for a CoC ROI of at least 10%. Any feedback, recommendation, and suggestion will be greatly appreciated.

@Enrique Garcia there are MANY ways to become a Real Estate Investor. Every method has its Pros and Cons. My favorite way to acquire a property is to see a distressed house, research the owner, contact them and find out if they are in the mood to sell the property.

If they want to sell at a price point with a good profit margin, then I will buy it personally, renovate and resell.

However if they are wanting top-of-market price, I offer to list the house on the MLS (I have my RE license) and seek a buyer for them at the highest price the neighborhood will support.

@Enrique Garcia if you direct message me, I’ll be happy to speak with you on the phone. Maybe we can create a mutually beneficial relationship.

Richard Owen

There are so many unknowns at this time, keep as much cash as possible. I believe there will be much more deals at better prices in the months to come; however even if nothing happens, you could just pay off the loan in 6 months.