New primary and rent out existing or BRRRR
I'm a first time RE investor and received a personal loan for 250K at 2% over 30 years and would love to get insight.
Option 1: BRRRR deal
-This is what i originally wanted to do but with rates and prices being what they are, it's difficult to find BRRRR deals rn
-My plan would be to do a BRRRR deal out of state as CA is too expensive. Buy a house cash for ~$180K and use the remainder for renovations and reserves.
-Being a first time RE investor, doing an out of state BRRRR might be a lot to bight off at once so I'm considering option 2.
Option 2: Buy a new primary and use my current residence as a rental
-The cashflow from my existing primary will cover the cost of the personal loan. However, the new house is more expensive so it will add approx $1K to my monthly payments
My question: For those who have done out of state BRRRR deals, do you think it's wise to pursue option 1 given my inexperience or go with option 2 to get a feel for RE investing. I understand that a BRRRR done right is going to make me more profit but trying to get an idea of if out of state investing is realistic right off the bat for someone new like me. Any insight is hugely appreciated!