Hi, Im looking at purchasing my first home within the next few months which will also double as my first investment property. All of the different strategies available are overwhelmingly say the least.
Originally I planned on purchasing a fixer up home putting down 20% and financing the home and renovations, living in it for a a year then selling, then the BRRRR strategy was introduced to me and I said to myself "why would I ever sell the property if I can continue to generate income and make profit off of the property" so I decided instead of selling after a year I would rent and refinance.
Then I discovered the wild profit margins of new construction! In my area having a home built is arguably less expensive than purchasing and existing home, however this would be my first home, so I have idea what to expect In regards to property taxes, utilities, permit expenses, or if property will me my expected appraisal value, etc.
I’m at a fork in the road and I’m not sure what to do
@Naydan Will do you have cash or savings? Can you house hack with a duplex?
@Naydan Will I would narrow down your criteria and create a clear game plan, it's definitely overwhelming if you don't know which direction you're headed. As Nicholas mentioned house hacking is a great way to get start especially if you have subpar credit and a small downpayment. The BRRRR strategy can be extremely powerful, however that comes with a higher level of risk. The biggest being the fact that in most cases you won't be able to get traditional bank financing for a property that needs significant work. Using hard money comes with much higher fees and a very short holding time compared to bank financing. There's a lot more pressure to make sure the renovations are competed within a given time frame and that the property appraises for high enough to repay the lender. With that being said, it can absolutely be done by a new investor, you just need to focus on your current situation and determine what will be best for you.
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