Wanting to get a BRRR started with 30K

[Ernesto Sanchez]

Over the last couple years I've been able to save up a good chunk of change and finally decided that my strategy would be to get into rental properties. Im about half way done listening to BRRR by David Greene and I am starting to have a lot of questions.

I live in Dallas where the market is a little high and so 30k won’t buy me much of a property and have enough to rehab. I’ve then looked into hard money, and I figured it would be a great idea considering the amount of money I have.

Has anyone been able to make a BRRR work using hard money as the original short term loan?

The reason I ask is because hard money will lend 70-75% ARV and when it comes down to refinance the banks are typically going to loan 70% ARV as well. So the refinanced loan will be paying off the original loan meaning that if I put anything more that 70% of the ARV into the deal ,to acquire and rehab, I would be leaving it in the deal at the time of refinance. So I'm concerned this could possibly tie most of my capital on my first deal and prevent me from doing a burrr again in the future.

Am I missing something or have a misunderstanding about how to make hard money work on a brrr as the original short term loan?

I would also very much appreciate any tips or different strategies I could use to help me get the ball rolling!

Thanks you in advance!

[Andrew Postell]

@Ernesto Sanchez I've seen hundreds of BRRRR properties in the DFW area and the common theme here is buying "OFF MARKET". No MLS properties. The BRRRR can absolutely be a great method but we must target off market properties in order for this strategy to work here. And $30k is plenty enough to get 10 properties in our market with the BRRRR method. Feel free to ask anything additional if you need!

@Andy Webb thanks for the mention!