Best Next Steps for Buying Second Investment Property

[Josh Anderson]

I currently own a property that has around $110,000 in equity. While I do not have a renter in this property yet, my plan is to have one by the end of the year (currently still renovating parts of the house). With the amount of equity that I have, I have been thinking a lot about investing in a second property. I've always had the dream of owning vacation rentals, however, I don't have that much capital and I worry about the "feast or famine" aspect of STR's.

I guess my main questions are: What's the best next investment for someone who is relatively new to real estate investing, is the BRRR method smart for me and should I do a cash out refi to help fund the next investment?

Thank you all for your help and advice. It is much appreciated! 

[Denise Supplee]

Hi @Josh Anderson nice to meet you here on BP! A cash-out refi could fund your next property, but only if your current home can cash flow once rented. For a newer investor, a long-term rental in a steady market might be the safest next move.
To maximize your money, consider house hacking or buying a small multifamily, you get rental income while living in one unit. If you’re set on STRs, start small: look for markets with year-round demand (near hospitals, colleges, or business hubs) to reduce seasonality risk.
BRRRR can work, but it's capital- and time-intensive. Focus on strong deals and learn the rehab process first before scaling.