First Time Investor

Flipper/Rehabber · Pittsburgh · Member since 2018 · 6k+ posts · 5k+ votes

hello. just a few reactions:

-BRRRR isn't a cash flow strategy, it's an equity strategy. if you do it right, you will have forced a bunch of equity, but since you're refinancing at the max possible ARV to get your capital back, you won't have any cash flow. again, that doesn't mean it's not a good strategy - it's just not a cash flow strategy.

-investing out of state is difficult. i get that your immediate market is expensive, but out of state is not a panacea. there are SO MANY posts on BP from investors in CA, CO, NY, etc. who chased cash flow in a "low cost" market and got absolutely crushed.

-meaningful "cash flow" in 8 years is going to be difficult. i know this goes against the hype but unless you have some kind of creative strategy LTRs won't do it. it's really after 5-10 years that the benefits start to come.

hope this helps

happy to dialogue further

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Denise SuppleeBusiness Member

Realtor · Willow Grove, PA · Member since 2017 · 1k+ posts · 652 votes

1y

Hi @Don Jackson, nice to meet you here on BP! Your "why" is solid, and your focus on education, team-building, and out-of-state investing is spot on. For BRRRR, lining up a reliable lender early is key, especially one familiar with value-add deals. At the same time, start narrowing markets based on landlord laws, price-to-rent ratios, and local team availability. Don't worry about perfect just keep making small, consistent moves forward. You're setting yourself up well!

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Don Jackson
OP
Member since 2021 · 9 posts · 15 votes
1y
Quote from @Denise Supplee:

Hi @Don Jackson, nice to meet you here on BP! Your "why" is solid, and your focus on education, team-building, and out-of-state investing is spot on. For BRRRR, lining up a reliable lender early is key, especially one familiar with value-add deals. At the same time, start narrowing markets based on landlord laws, price-to-rent ratios, and local team availability. Don't worry about perfect just keep making small, consistent moves forward. You're setting yourself up well!

Hi @Denise Supplee,
Thank you for the words of encouragement! I agree that some of the most important next steps are going to be identifying a lender and markets. Right now, I'm trying to narrow it down to two or three markets, and then I'll dig into the details to decide which one to start with. After that, I'll start looking for an investor-friendly agent and PM.

Thanks!
Don
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Melissa JusticeBusiness Member

Rental Property Investor · Phoenix, AZ · Member since 2024 · 518 posts · 1k+ votes

1y

@Don Jackson,

Hey! welcome, and great first post!

Many of us started with that exact same "why" - wanting to take back control after realizing a W-2 job can’t be your only safety net. You’ve got a solid plan, and you’re ahead of the game by focusing on education and long-term scalability.

That said, doing BRRRR out of state without an existing team is tough, especially on your first deal. It's definitely doable, but you'll need a rock-solid contractor and PM and ideally, someone on the ground who can verify the rehab quality and keep timelines in check.

If you’re open to it, a turnkey rental in a strong Midwest or Southeast market might be a good first step. You can:
Start cash flowing from day one
Work with vetted local teams (lenders, PMs, etc.)
Learn the ropes with far less risk
Then roll into BRRRR with confidence in that same market later

Markets like Birmingham, Memphis and Akron, OH are solid for this approach. Many investors start with turnkey and transition into BRRRR once they’ve got a team and some capital momentum.

Always happy to chat more about specific markets or run numbers on sample deals.

Best of luck!

[email protected]313-221-8718

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Don Jackson
OP
Member since 2021 · 9 posts · 15 votes
1y
Quote from @Melissa Justice:

@Don Jackson,
Hey! welcome, and great first post!

Many of us started with that exact same "why" - wanting to take back control after realizing a W-2 job can’t be your only safety net. You’ve got a solid plan, and you’re ahead of the game by focusing on education and long-term scalability.

That said, doing BRRRR out of state without an existing team is tough, especially on your first deal. It's definitely doable, but you'll need a rock-solid contractor and PM and ideally, someone on the ground who can verify the rehab quality and keep timelines in check.

If you’re open to it, a turnkey rental in a strong Midwest or Southeast market might be a good first step. You can:
Start cash flowing from day one
Work with vetted local teams (lenders, PMs, etc.)
Learn the ropes with far less risk
Then roll into BRRRR with confidence in that same market later

Markets like Birmingham, Memphis and Akron, OH are solid for this approach. Many investors start with turnkey and transition into BRRRR once they’ve got a team and some capital momentum.

Always happy to chat more about specific markets or run numbers on sample deals.
Best of luck!

Hi @Melissa Justice,
Thank you for the feedback! I agree that a BRRRR on my first property will definitely be challenging and its success will depend largely not only on my preparation but having the best team in place possible.
I looked at the turnkey model, and what is steering me towards the BRRRR is the possibility of pulling all or hopefully at least most of my capital out of the deal once it's renovated so I can immediately start looking for the next property. Turnkey doesn't seem to offer the same potential to scale as quickly with the limited amount of capital that I have available at this time.
Thanks,
Don
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Min ZhangBusiness Member

Real Estate Agent · Member since 2022 · 1k+ posts · 1k+ votes

1y

Welcome to BP Don! A good next step would be to narrow down 2-3 markets you're interested in. Look for areas with solid cash flow potential, job growth and landlord-friendly laws. Once you've got a few in mind, connect with local investors there to learn what's actually working for them. You can aslo ask for their recommendation for referrals to lenders, agents, PMS and contractors. It can save you a ton of trial and error. Hope this helps and best of luck on your journey!

[email protected]614-412-2912

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Bernice RetzloffPro Member

Memphis, TN · Member since 2024 · 234 posts · 100 votes

1y

Hi @Don Jackson!

First off, huge respect for taking the initiative to shift gears after that wake-up call. Many people think about diversifying, but you're actually doing something about it. That mindset alone already puts you ahead.

Your long-term goals and structured approach are solid! Especially focusing on out-of-state BRRRR deals. Since you're looking to build cash flow and recycle capital, choosing the right market with the right team is going to be crucial.

If you’re still weighing options, Memphis, TN is worth a close look. I’m a licensed real estate agent here who works exclusively with out-of-state investors, and Memphis has a lot of what you're looking for:

Low acquisition costs (often $100K–$150K for value-add SFRs)
Strong rental demand and solid rent-to-price ratios
Landlord-friendly laws
Established investor ecosystem (contractors, PMs, investor-friendly lenders, etc.)

I’ve worked with several investors in a similar stage. Full-time job, young family, looking to build smart for the long haul. And the key has always been local boots on the ground you can trust.

Happy to be a resource if you’re looking to evaluate Memphis more seriously or just want someone to talk through the next few steps with. You’re laying a great foundation! Keep going, and welcome to the active side of BiggerPockets!

901-664-1949

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Don Jackson
OP
Member since 2021 · 9 posts · 15 votes
1y
Quote from @Bernice Retzloff:
Hi @Don Jackson!
First off, huge respect for taking the initiative to shift gears after that wake-up call. Many people think about diversifying, but you're actually doing something about it. That mindset alone already puts you ahead.

Your long-term goals and structured approach are solid! Especially focusing on out-of-state BRRRR deals. Since you're looking to build cash flow and recycle capital, choosing the right market with the right team is going to be crucial.

If you’re still weighing options, Memphis, TN is worth a close look. I’m a licensed real estate agent here who works exclusively with out-of-state investors, and Memphis has a lot of what you're looking for:

Low acquisition costs (often $100K–$150K for value-add SFRs)

Strong rental demand and solid rent-to-price ratios

Landlord-friendly laws

Established investor ecosystem (contractors, PMs, investor-friendly lenders, etc.)

I’ve worked with several investors in a similar stage. Full-time job, young family, looking to build smart for the long haul. And the key has always been local boots on the ground you can trust.

Happy to be a resource if you’re looking to evaluate Memphis more seriously or just want someone to talk through the next few steps with. You’re laying a great foundation! Keep going, and welcome to the active side of BiggerPockets!
Hi @Bernice Retzloff,
Thank you for your input! I've been looking at Memphis, like you said, the acquisition costs are reasonable for the amount of capital I have available, but the thing that concerns me is the lack of population growth, or more specifically, the population decline over the last several years. I know I don't live there and am only recently starting to research the city, but what I'm finding states that the decline is nothing new. Is there something I'm missing? This is just one example of what I'm finding when I research the population of Memphis.
https://memphismagazine.com/features/columns/living-in-a-shr...
Please let me know your thoughts.
Thanks,
Don
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Douglas SkipworthBusiness Member

Rental Property Investor · Memphis, TN · Member since 2014 · 1k+ posts · 1k+ votes

1y

Quote from @Don Jackson:

Quote from @Bernice Retzloff:

Hi @Don Jackson!

First off, huge respect for taking the initiative to shift gears after that wake-up call. Many people think about diversifying, but you're actually doing something about it. That mindset alone already puts you ahead.

Your long-term goals and structured approach are solid! Especially focusing on out-of-state BRRRR deals. Since you're looking to build cash flow and recycle capital, choosing the right market with the right team is going to be crucial.

If you’re still weighing options, Memphis, TN is worth a close look. I’m a licensed real estate agent here who works exclusively with out-of-state investors, and Memphis has a lot of what you're looking for:

Low acquisition costs (often $100K–$150K for value-add SFRs)
Strong rental demand and solid rent-to-price ratios
Landlord-friendly laws
Established investor ecosystem (contractors, PMs, investor-friendly lenders, etc.)

I’ve worked with several investors in a similar stage. Full-time job, young family, looking to build smart for the long haul. And the key has always been local boots on the ground you can trust.

Happy to be a resource if you’re looking to evaluate Memphis more seriously or just want someone to talk through the next few steps with. You’re laying a great foundation! Keep going, and welcome to the active side of BiggerPockets!

Hi @Bernice Retzloff,

Thank you for your input! I've been looking at Memphis, like you said, the acquisition costs are reasonable for the amount of capital I have available, but the thing that concerns me is the lack of population growth, or more specifically, the population decline over the last several years. I know I don't live there and am only recently starting to research the city, but what I'm finding states that the decline is nothing new. Is there something I'm missing? This is just one example of what I'm finding when I research the population of Memphis.

https://memphismagazine.com/features/columns/living-in-a-shr...

Please let me know your thoughts.

Thanks,

Don

Great question, @Don Jackson! Here's what I've observed.

The actual City of Memphis is staying pretty stable over the past few decades, but the greater Memphis MSA is continuing to grow.

When people talk about investing in "Memphis," it can mean the city itself or several other municipalities in the area such as Bartlett, Collierville, Olive Branch, Southaven, Millington, etc.

Below is the historical population of the Memphis MSA, which shows continuous steady growth.

Census	Pop.	%±
1900	153,557	—
1910	191,439	24.7%
1920	223,216	16.6%
1930	306,482	37.3%
1940	358,250	16.9%
1950	482,393	34.7%
1960	811,082	68.1%
1970	911,123	12.3%
1980	997,844	9.5%
1990	1,067,263	7.0%
2000	1,205,204	12.9%
2010	1,316,100	9.2%
2020	1,346,172	2.3%

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Drago Stanimirovic

New to Real Estate · Miami, FL · Member since 2024 · 1k+ posts · 474 votes

1y

Don, your “why” is solid, protecting your family’s future and building financial independence is one of the best reasons to pursue real estate. You’re thinking long-term and strategically, which already sets you apart.

Investing out of state makes sense if Denver’s pricing is a stretch. Focus on one or two cash-flowing markets where you can build a local team, your agent, PM, and contractor will make or break your BRRRRs. Education is crucial, but pairing that with action (even if it’s just analyzing deals weekly) will accelerate your confidence. And yes, getting prequalified with an investor-friendly lender early is a smart next step, it’ll clarify your budget and timeline.

Happy to support you on your REI journey!

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E.J. McCaffrey

Member since 2025 · 194 posts · 140 votes

1y

Welcome to the group.

You're already on the right track by connecting with others and seeking out the right information. Real estate investing can be a powerful path to long term wealth, but it’s not without risks: lawsuits, liability exposure, and unexpected creditor issues can all derail even the best laid plans.

Many new investors get stuck in analysis paralysis, endlessly researching and planning but never taking action. The key to moving forward confidently is building a solid foundation with the right team. That usually means having a tax advisor who truly understands real estate and an asset protection attorney who can tailor strategies to your goals and risk tolerance.

With the right guidance, you can structure your investments wisely from the beginning, saving time, reducing stress, and staying focused on growth. Putting proper legal and financial safeguards in place helps protect your personal assets, reduce your risk of litigation, and even strengthen your position in negotiations.

Smart investing isn’t just about buying the right properties, it is about protecting what you have worked hard to build so you can keep growing with confidence.

Wishing you clarity, confidence, and success on your investment journey!

Disclaimer: This message is for informational and educational purposes only and should not be considered legal, tax, financial, or investment advice. No attorney-client, fiduciary, or advisory relationship is created by this communication. Always consult with qualified professionals familiar with your specific situation before making any decisions.

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Jimmy LieuBusiness Member

Real Estate Agent · Columbus, OH · Member since 2019 · 3k+ posts · 2k+ votes

1y

Quote from @Don Jackson:

Hey Team,

Long time lurker, first time posting, so I'll start with my "why(s)".

Earlier this year, my employer had a round of layoffs; thankfully, I made it through unscathed, but I realized how much I disliked letting a company have that much influence over my family's wellbeing, so I decided I needed to diversify my income. I have a small side hustle that generates a little money, but it's not nearly enough to support my family. I have been wanting to invest in real estate for a while, and a few months ago, I decided it was time to start. I also have two kids who will be going to college in about 8 years, I will be retiring in about 15 years, and I would like to have some extra cash flow to make both of those events a little more manageable.

The plan;

Right now, I am in my education period (reading books, watching YouTube, and listening to podcasts) with a goal of purchasing my first property later this year or early '26. I currently live outside of Denver, and the buy-in for this market is above the amount of capital I have available to get started, so I have decided that I will need to invest out of state. The key to this approach for me to be comfortable will be educating myself properly, but the obvious advantage is that it'll open up more options, and I do not plan on managing the rentals myself. I do not have a market identified (still doing my research), but the business plan is to have cash-flowing rentals purchased using the BRRRR method, so I can pull most of my cash out and get to the next property quicker than waiting for the cash flow to accumulate for my next down payment. I plan on identifying a market that I can have multiple rentals in, so I know it will be important to have a good investor-friendly agent, and of course, a good PM and contractor. I know the rest of this team will not matter if I can't find a lender that will work with me, so I think one of the next steps is to identify a lender.

I plan on posting more on each of these individual steps in the appropriate categories, but I just wanted to get this initial post out there to introduce myself and see if anyone has any advice on the broad strokes of my plan.

Thanks everyone!

Don

Hey Don, welcome to BP and really appreciate you sharing your "why"—that mindset and level of intentionality will take you far. Sounds like you're thinking through everything the right way and laying the groundwork for a strong long-term game. Since you're focused on BRRRR, cash flow, and building out a portfolio in one market, I'd definitely recommend taking a good look at Columbus, Ohio. I moved here from Portland, Oregon back in 2020 to start investing and now own 10+ rentals—it's been a great fit for the BRRRR model. Columbus still has inventory in the $120K–$180K range where you can find deals that cash flow from day one and appraise well after a value-add, especially if you're buying right and managing your rehab budget.

The macro trends here are super strong too—tons of population growth, job creation, and massive developments like the $26B Intel chip plant, plus major companies like Amazon, Google, Microsoft, Honda, Facebook, and others growing their footprint. It’s also very landlord-friendly, which is key when investing from out of state. Since you mentioned building a local team, Columbus has a solid community of investor-friendly agents, lenders, contractors, and PMs, and it’s a big enough city where you can scale without having to jump around to new markets.

Biggest advice I’d give is to connect with other investors in your target market early and often—learning from folks already doing BRRRRs there will save you a ton of time and money. Keep stacking knowledge like you’re doing now, start building those key relationships (especially with lenders and agents), and keep moving forward even if it’s a little at a time. Happy to connect and answer any questions you have!

[email protected]614-300-7535

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Sam McCormackBusiness Member

Real Estate Agent · Cincinnati, OH/NKY · Member since 2021 · 1k+ posts · 834 votes

1y

Quote from @Don Jackson:

Hey Team,

Long time lurker, first time posting, so I'll start with my "why(s)".

Earlier this year, my employer had a round of layoffs; thankfully, I made it through unscathed, but I realized how much I disliked letting a company have that much influence over my family's wellbeing, so I decided I needed to diversify my income. I have a small side hustle that generates a little money, but it's not nearly enough to support my family. I have been wanting to invest in real estate for a while, and a few months ago, I decided it was time to start. I also have two kids who will be going to college in about 8 years, I will be retiring in about 15 years, and I would like to have some extra cash flow to make both of those events a little more manageable.

The plan;

Right now, I am in my education period (reading books, watching YouTube, and listening to podcasts) with a goal of purchasing my first property later this year or early '26. I currently live outside of Denver, and the buy-in for this market is above the amount of capital I have available to get started, so I have decided that I will need to invest out of state. The key to this approach for me to be comfortable will be educating myself properly, but the obvious advantage is that it'll open up more options, and I do not plan on managing the rentals myself. I do not have a market identified (still doing my research), but the business plan is to have cash-flowing rentals purchased using the BRRRR method, so I can pull most of my cash out and get to the next property quicker than waiting for the cash flow to accumulate for my next down payment. I plan on identifying a market that I can have multiple rentals in, so I know it will be important to have a good investor-friendly agent, and of course, a good PM and contractor. I know the rest of this team will not matter if I can't find a lender that will work with me, so I think one of the next steps is to identify a lender.

I plan on posting more on each of these individual steps in the appropriate categories, but I just wanted to get this initial post out there to introduce myself and see if anyone has any advice on the broad strokes of my plan.

Thanks everyone!

Don

I may have missed it in your post but where are you? Can you invest within like 50 miles of where you are? If you can help it, I normally don't recommend investing in your first deal, OOS

[email protected]859-443-4952

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Wesley Callahan

Hernando, MS · Member since 2025 · 5 posts · 3 votes

1y

Hey Don — welcome to posting on BP, and I love your “why.” I had a similar moment a few years ago where I realized I needed more control over my family’s financial future, and real estate ended up being the best move I made.

Since you're looking for a BRRRR-friendly market, I'll throw North Mississippi / DeSoto County (just south of Memphis) on your radar. It checks a lot of boxes for someone in your stage:

Approachable Prices: You can still find SFRs in the $150K–$220K range that rent for $1,500–$2,000/month.
Steady Appreciation: We’ve been seeing 4–5% YoY growth in many neighborhoods.
Strong Rental Demand: Low vacancy, solid tenant pool, and close to Memphis’ job market.
Investor Infrastructure: Plenty of investor-friendly agents, lenders, PMs, and contractors.

The big benefit here is you can buy in a market with growth potential and positive cash flow — then recycle your capital through the BRRRR method like you're planning.

If you'd like, I can share recent rent comps, sample BRRRR numbers, and contacts for a full "boots-on-the-ground" team so you can see if it might fit your strategy.

Thanks,

Wes

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Terrance HillPro Member

Realtor · Memphis, TN · Member since 2010 · 425 posts · 117 votes

1y

Welcome! Your “why” is solid, and it sounds like you’ve already got the right mindset by taking the education phase seriously before jumping in. A few thoughts:

Out-of-state BRRRRs can work, but they’re management- and team-intensive—finding a trustworthy PM and contractor will make or break your plan.
Before locking in a market, I’d suggest choosing 2–3 metros and running sample deals through the BiggerPockets calculator so you can compare cash flow, rehab costs, and appreciation potential.
For financing, start calling a mix of local credit unions, regional banks, and investor-friendly mortgage brokers in the markets you’re researching—those tend to be more flexible with BRRRRs.
Since you’re not planning to self-manage, cash flow margins are even more important—don’t underestimate reserves and vacancy/maintenance buffers.

Overall, your plan looks solid—keep building knowledge, run numbers before falling in love with a market, and build your team early. Excited to see your updates when you zero in on a market!

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William ThompsonBusiness Member

Accountant · Williamstown, NJ · Member since 2025 · 337 posts · 180 votes

1y

Love your ‘why' 👏 Out-of-state BRRRR works, but remember: financing gets you in the deal, tax strategy keeps you profitable long-term.

[email protected]609-820-0891

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Account Closed

Member since 2023 · 34 posts · 6 votes

1y

It’s always best to visit the investment properties of other investors WITH THEM, which is rare, but if you can do it. Pay someone to shadow them at their properties. THATS THE BEST WAY TO LEARN IN YOUR LOCAL MARKET SOMETIMES .

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First Time Investor

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