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[Logan Sierra]

Happy Thanksgiving BP family! 

My wife and I are going to start diving into property investing. I believe BRRRR is the best strategy for us. I am in the military so we move fairly often which leads me to be willing to invest anywhere that makes sense. Looking for cash flow as a priority over appreciation at this point. I want to stay under 100K for purchase and renovations. Additionally, I plan to turn these into MTR for the additional bump in cash flow.

What areas should I start doing much deeper research into? Any response would be greatly appreciated! Thanks!

Logan

[Bonnie Low]

Quote from @Logan Sierra:

Quote from @Bonnie Low:

Quote from @Nicholas L.:

@Logan Sierra

its going to be tough to come in at $100K total ANYWHERE and that is going to be a very, very difficult price point to start with. you'd have to find a very distressed house in the midwest with the potential to greatly increase the ARV, and while it's possible, if you buy on the wrong street you won't be able to do it.  

and - BRRRR isn't a cash flow strategy right now. in fact - the better your BRRRR turns out right now, the less likely it is going to cash flow - because that higher value is going to give you a larger mortgage payment.  it's an equity strategy right now.

some things to think about.

This is spot on advice. $100k all in for purchase, renovations and property furnishing an MTR is going to be very difficult unless you buy significantly below market or are able to use a creative financing strategy like owner finance. Just curious why you've capped it at $100k? Are you able to push that to at least $150-$200k? You could get somewhere with those numbers. Check out a recent On the Market podcast where they go over 10 under-the-radar markets where you can buy significantly below the national median home price and still cash flow.

I spent a while thinking about this seemingly simple question. Besides risk tolerance, I cannot think of another good reason that 100k is my max. 
I know there are tons of creative way to come up with however much I would need. Just starting out I think I was trying to keep it low for risk. 
Currently I do not have the cold hard cash to fund a project of this magnitude or larger. 
Thanks for the simple yet eye opening question! And I will check out that podcast as well! 
Logan

 I totally get where you're coming from, but here's another thought about risk tolerance. One of the best ways to mitigate risk is to buy a solid property. Somewhat counterintuitively, a low purchase price is actually almost always a HIGHER risk investment. There is likely more deferred maintenance needed, higher cap ex, you need more more reserves, a less stable renter pool and likely a less desirable location. I'd encourage you to look at C+ and above properties. You may pay a little more, but you'll come out ahead. If you aren't already, use a program like Deal Check (or the BP calculators) to run numbers on a lot of properties whether you're actually interested in them or not. You'll start to see how the interest rate, purchase price, repairs and vacancy impact your net investment.