Suggestions for my 1st Investment: Should I start with a BRRRR or focus on cash flow?
Most Popular Reply
River SavaPro Member
Lender · USA · Member since 2022 · 1k+ posts · 1k+ votesHi Ximei -
If you’re leaning towards BRRRRs, start by exploring investor groups or local meetups to connect with realtors, lenders, contractors, etc to build a network before you dive in. The right connections can help manage the rehab side and reduce some risk, especially if time is tight with a demanding job and young kids.
For the single-family route, consider markets that have potential for both appreciation and cash flow, so you’re building equity over time even if it's a slower route to property number two. That being said, are there any specific markets you’re looking at?
Good luck and happy to connect with you!
31 Replies
- Member since 2020 · 15 posts · 6 votes1y
I'd recommend if your goal is to gain cash flow faster in order to free up your time, then BRRRing a property would be the best option. It'll increase your equity in the home, and if done correctly, you'll be able to pull out your funds in 6-9 months and get a second property going. There are plenty of trustworthy contractors out there. I'd just make sure to check their references. Especially if you're going to invest farther away.
- Member since 2024 · 12 posts · 20 votes1yThanks so much for the response. Are there any good platform to find GCs? Also, are there any recommended way to keep track of the rehab projects in long distance?
Quote from @Ben Foullon:
I'd recommend if your goal is to gain cash flow faster in order to free up your time, then BRRRing a property would be the best option. It'll increase your equity in the home, and if done correctly, you'll be able to pull out your funds in 6-9 months and get a second property going. There are plenty of trustworthy contractors out there. I'd just make sure to check their references. Especially if you're going to invest farther away.
- Member since 2020 · 15 posts · 6 votes1y
I would connect with a good realtor who primarily works with investors. Bigger pockets have a list of investor agents. Most of them have tons of connections to reliable GCs, electricians, property managers, and pretty much anyone you would need! What market are you thinking of investing jn?
- Member since 2024 · 12 posts · 20 votes1y
Quote from @Ben Foullon:
I would connect with a good realtor who primarily works with investors. Bigger pockets have a list of investor agents. Most of them have tons of connections to reliable GCs, electricians, property managers, and pretty much anyone you would need! What market are you thinking of investing jn?
I am interested in Ohio, Cleveland
- 1yRemington LymanBusiness MemberReal Estate Agent · Columbus, OH · Member since 2017 · 6k+ posts · 7k+ votes
Quote from @Ximei Yue:
Quote from @Ben Foullon:
I would connect with a good realtor who primarily works with investors. Bigger pockets have a list of investor agents. Most of them have tons of connections to reliable GCs, electricians, property managers, and pretty much anyone you would need! What market are you thinking of investing jn?
I am interested in Ohio, Cleveland
Welcome to the Ohio real estate market. Many Ohio real estate professionals use this site, so you should be able to find the help you need.
- 1yRiver SavaPro MemberLender · USA · Member since 2022 · 1k+ posts · 1k+ votes
Hi Ximei -
If you’re leaning towards BRRRRs, start by exploring investor groups or local meetups to connect with realtors, lenders, contractors, etc to build a network before you dive in. The right connections can help manage the rehab side and reduce some risk, especially if time is tight with a demanding job and young kids.
For the single-family route, consider markets that have potential for both appreciation and cash flow, so you’re building equity over time even if it's a slower route to property number two. That being said, are there any specific markets you’re looking at?
Good luck and happy to connect with you!
- 1ySamuel DioufBusiness MemberReal Estate Agent · Columbus & Cleveland, OH · Member since 2023 · 1k+ posts · 1k+ votes
Hey Ximei, I would start with something that's turnkey with value-add potential. Use this experience to work out the kinks and build a strong boots on the ground team. The first purchase is always a huge learning experience. Once you're ready for the next purchase, you will have experience, systems, and the confidence to tackle a bigger project like a BRRRR.
Reafco - Samuel Diouf528 Reviews - Member since 2024 · 12 posts · 20 votes1y
Quote from @Remington Lyman:
Quote from @Ximei Yue:
Quote from @Ben Foullon:
I would connect with a good realtor who primarily works with investors. Bigger pockets have a list of investor agents. Most of them have tons of connections to reliable GCs, electricians, property managers, and pretty much anyone you would need! What market are you thinking of investing jn?
I am interested in Ohio, Cleveland
Welcome to the Ohio real estate market. Many Ohio real estate professionals use this site, so you should be able to find the help you need.
Thanks so much! I will reach out to people here. Appreciate all the info.
- Member since 2024 · 12 posts · 20 votes1y
Quote from @Samuel Diouf:
Hey Ximei, I would start with something that's turnkey with value-add potential. Use this experience to work out the kinks and build a strong boots on the ground team. The first purchase is always a huge learning experience. Once you're ready for the next purchase, you will have experience, systems, and the confidence to tackle a bigger project like a BRRRR.
Hi Sam, thanks so much for the response! Love this suggestion. Yes, I agree that having a great team working together is definitely the key. Appreciate the suggestion!!!
- Member since 2024 · 12 posts · 20 votes1yThanks River!! I am interested in Ohio
Quote from @River Sava:
Hi Ximei -
If you’re leaning towards BRRRRs, start by exploring investor groups or local meetups to connect with realtors, lenders, contractors, etc to build a network before you dive in. The right connections can help manage the rehab side and reduce some risk, especially if time is tight with a demanding job and young kids.
For the single-family route, consider markets that have potential for both appreciation and cash flow, so you’re building equity over time even if it's a slower route to property number two. That being said, are there any specific markets you’re looking at?
Good luck and happy to connect with you!
- 1yNicholas L.Pro MemberFlipper/Rehabber · Pittsburgh · Member since 2018 · 6k+ posts · 5k+ votes
hello. i only know what you posted, so here goes.
BRRRR is a very hands-on, time intensive strategy. based on what you said, i don't see how it would be a good fit for you, given your work and family situation.
BRRRR does not yield any cash flow. it is an equity creation strategy. if done right, you'll likely break even each month on rent, and you'll have the equity you created via the rehab. but no cash flow.
i'm not trying to be discouraging, just realistic. we are just not in a cash flow market right now.
- 1yJake AndronicoBusiness MemberRealtor · Reno, NV · Member since 2019 · 1k+ posts · 938 votes
Congrats, you're in an awesome spot!!
Here are some facts that stick out to me:
1. You have a great job that pays well.
2. You have a demanding job that requires long hours.
3. You have a young family with multiple kids.
Real estate is a long game. If you go in swinging for the fences, don't be surprised if you strike out.Learn how to consistently hit singles and doubles, and don't be ashamed to take the occasional walk.
5 years is a very short time frame to go from no RE to financially free (although you may already have property, which is an awesome start).
Unless you're willing to take the risk and put in the work (which means less time with your family), it will likely take longer, and that's OK!I do not mean to sound harsh, as RE has changed my life and I fully believe in it. But, it's a long game.
Best of luck to you!
- 1yJimmy LieuBusiness MemberReal Estate Agent · Columbus, OH · Member since 2019 · 3k+ posts · 2k+ votes
Quote from @Ximei Yue:
I am a Newbie.
Here is a summary of what I want to ask some advice. Any suggestions are appreciated.
I have about $50K in saving and could potentially get to $100K in cash for my very first real estate investment.
Current consideration:
- 1. Start with BRRR in some areas that have lower barrier for entry
- Pros: Could potentially get to the second investment sooner
- Cons: No existing contractor connections. Could run into issues. Good deals are not easy to find.
- 2. Start with a single family home at areas where I could afford and have a stable cashflow
- Pros: Easier to manage
- Cons: Would have no equity to invest in my second property
Some background about myself:
- Have a full-time job ($190K a year income). Financially my full-time job is our main income as a family.
- Job is demanding. Long hours.
- With 3 young kids. One of them is just one year old. And, another one requires more support (special needs).
- Husband working on starting his own business (starting phase, no income)
- On the side, there are some income ($50K a year)
Goal:
- 1. Get to a point of having enough cash flow for me to spend less time on my job and more time with young kids in 5 years
- 2. Have a bit more control of my time.
Hi Ximei! Given your situation (demanding job, young family, special needs child), I would suggest doing the SFH route for your first investment, especially if it's OOS. You can target stable areas that can rent for $2.8k-$3.2k. You'll have quality tenants, minimal hands-on management, and lower potential maintenance issues. With your current plate full, starting with a turnkey SFH lets you learn the ropes with fewer headaches. You can always scale into BRRRRs once you've built a solid relationship with a PM, learned the market well, have enough saved for BRRRR expenses, and have built equity on your first property. Happy to connect and answer any questions you may have.
Jimmy Lieu, Red 1 Realty4.9120 Reviews - Member since 2024 · 12 posts · 20 votes1y
Quote from @Jake Andronico:
Congrats, you're in an awesome spot!!
Here are some facts that stick out to me:
1. You have a great job that pays well.
2. You have a demanding job that requires long hours.
3. You have a young family with multiple kids.
Real estate is a long game. If you go in swinging for the fences, don't be surprised if you strike out.Learn how to consistently hit singles and doubles, and don't be ashamed to take the occasional walk.
5 years is a very short time frame to go from no RE to financially free (although you may already have property, which is an awesome start).
Unless you're willing to take the risk and put in the work (which means less time with your family), it will likely take longer, and that's OK!I do not mean to sound harsh, as RE has changed my life and I fully believe in it. But, it's a long game.
Best of luck to you!
Thanks so much for the constructive feedback! Much appreciated. Yes, you are absolutely correct. I need to figure out the trade-offs and plan for the longer term! Thanks again!!!
- Member since 2024 · 12 posts · 20 votes1y
Quote from @Nicholas L.:
hello. i only know what you posted, so here goes.
BRRRR is a very hands-on, time intensive strategy. based on what you said, i don't see how it would be a good fit for you, given your work and family situation.
BRRRR does not yield any cash flow. it is an equity creation strategy. if done right, you'll likely break even each month on rent, and you'll have the equity you created via the rehab. but no cash flow.
i'm not trying to be discouraging, just realistic. we are just not in a cash flow market right now.
Hello Nicholas, appreciate the response!!! This is SUPER helpful. It helps me think through the macro environment and set realistic goals.
- Member since 2024 · 12 posts · 20 votes1yThanks so much Jimmy!!! This is SUPER helpful. Appreciate the response. Are there some strategies to find markets with potential?
Quote from @Jimmy Lieu:
Quote from @Ximei Yue:
I am a Newbie.
Here is a summary of what I want to ask some advice. Any suggestions are appreciated.
I have about $50K in saving and could potentially get to $100K in cash for my very first real estate investment.
Current consideration:
- 1. Start with BRRR in some areas that have lower barrier for entry
- Pros: Could potentially get to the second investment sooner
- Cons: No existing contractor connections. Could run into issues. Good deals are not easy to find.
- 2. Start with a single family home at areas where I could afford and have a stable cashflow
- Pros: Easier to manage
- Cons: Would have no equity to invest in my second property
Some background about myself:
- Have a full-time job ($190K a year income). Financially my full-time job is our main income as a family.
- Job is demanding. Long hours.
- With 3 young kids. One of them is just one year old. And, another one requires more support (special needs).
- Husband working on starting his own business (starting phase, no income)
- On the side, there are some income ($50K a year)
Goal:
- 1. Get to a point of having enough cash flow for me to spend less time on my job and more time with young kids in 5 years
- 2. Have a bit more control of my time.
Hi Ximei! Given your situation (demanding job, young family, special needs child), I would suggest doing the SFH route for your first investment, especially if it's OOS. You can target stable areas that can rent for $2.8k-$3.2k. You'll have quality tenants, minimal hands-on management, and lower potential maintenance issues. With your current plate full, starting with a turnkey SFH lets you learn the ropes with fewer headaches. You can always scale into BRRRRs once you've built a solid relationship with a PM, learned the market well, have enough saved for BRRRR expenses, and have built equity on your first property. Happy to connect and answer any questions you may have.
- Lender · Miami, FL · Member since 2024 · 6 posts · 2 votes1y
Congrats on taking the first steps toward investing—your vision and planning are impressive! With your goals in mind, here are some thoughts on each approach to help you decide what might work best for your situation:
- BRRRR Strategy: The BRRR (Buy, Rehab, Rent, Refinance, Repeat) method can accelerate portfolio growth, but it does require strong contractor connections and careful planning. Since your job is demanding, and you're balancing family responsibilities, starting with BRRR could add stress without established connections. To get started, consider networking in local real estate groups to find reliable contractors or partnering with experienced BRRR investors who can help navigate initial projects. This way, you might mitigate some risks and get guidance for your first rehab.
- Single-Family Investment for Cash Flow: Starting with a single-family property in a stable, affordable market might align well with your goals. Single-family homes in cash-flow-positive areas tend to be easier to manage, especially if you use professional property management. This could allow you to build equity steadily, reduce the immediate demands on your time, and potentially refinance in a few years to access funds for future investments.
- Alternative Approach: Small Multi-Family Property: If you're open to it, a small multi-family property (like a duplex or triplex) can combine elements of both strategies. Multi-families offer more cash flow potential than single-family homes and are often easier to manage than a BRRR, giving you the chance to grow without the same level of involvement.
Given your busy schedule and family responsibilities, a single-family or small multi-family might be a good start, letting you get familiar with property management while earning stable cash flow. Once you've gained experience and have a trusted team, BRRRR could be a great second step. Let me know if you want insights on financing options! Happy to connect.
- Real Estate Agent · Memphis, TN · Member since 2019 · 365 posts · 264 votes1y
@Ximei Yue welcome to the forums! BRRR'ing is a great strategy to build equity but it's a riskier play and time intensive if you're trying to do it out of state. If you have the time and effort to build out a team of a investor friendly agent, contractors and a property manager then it's a very viable option but in todays time there will be very little to no cash flow. But again it's a great way to build equity and recycle that money.
There are some turnkey providers that are vertically integrated that might be of interest to you if you want to invest passively. Companies that purchase the home with their own money, renovate them, sell to their investors and manage for them on the back end. This is also a great way to build long term wealth especially if you're investing in higher appreciating markets like Texas. Let time do it's thing over 5-10 years, you can take advantage of the tax benefits in the meantime then 1031 exchange into lower cost, higher yielding markets to achieve those goals.
Great thing abotu real estate is if you have the capital you have options and options are always good. Everyone's goals are going to be different it all comes down to what it is you want to do and how much time and effort you want to spend. Best of luck on the journey! Feel free to reach out if I can be of any assistance
- Real Estate Broker · Cleveland Dayton Cincinnati Toledo Columbus & Akron, OH · Member since 2013 · 30k+ posts · 20k+ votes1y
Quote from @Ximei Yue:
I am a Newbie.
Here is a summary of what I want to ask some advice. Any suggestions are appreciated.
I have about $50K in saving and could potentially get to $100K in cash for my very first real estate investment.
Current consideration:
- 1. Start with BRRR in some areas that have lower barrier for entry
- Pros: Could potentially get to the second investment sooner
- Cons: No existing contractor connections. Could run into issues. Good deals are not easy to find.
- 2. Start with a single family home at areas where I could afford and have a stable cashflow
- Pros: Easier to manage
- Cons: Would have no equity to invest in my second property
Some background about myself:
- Have a full-time job ($190K a year income). Financially my full-time job is our main income as a family.
- Job is demanding. Long hours.
- With 3 young kids. One of them is just one year old. And, another one requires more support (special needs).
- Husband working on starting his own business (starting phase, no income)
- On the side, there are some income ($50K a year)
Goal:
- 1. Get to a point of having enough cash flow for me to spend less time on my job and more time with young kids in 5 years
- 2. Have a bit more control of my time.
Probably wouldn't do a BRRRR on your 1st deal. Too many moving parts. Risk is higher. Buy something with 25% down. Simple.
- 1yKris HoltPro MemberReal Estate Agent · Atlanta, GA · Member since 2020 · 15 posts · 18 votes
@Ximei Yue I think you've come to right place. I can't think of a more extensive network of investors to lean on for advice than BiggerPockets. BRRRR seems to be the way to go and then scale, scale, scale for the income that you want to achieve. Some recommend the STACK method also. I would identify a market based on your current capacity and begin to network online and here on BP to form a solid trustworthy team to help you get going. Let me know if I can help!
- 1yJimmy LieuBusiness MemberReal Estate Agent · Columbus, OH · Member since 2019 · 3k+ posts · 2k+ votes
Quote from @Ximei Yue:
Thanks so much Jimmy!!! This is SUPER helpful. Appreciate the response. Are there some strategies to find markets with potential?Quote from @Jimmy Lieu:
Quote from @Ximei Yue:
I am a Newbie.
Here is a summary of what I want to ask some advice. Any suggestions are appreciated.
I have about $50K in saving and could potentially get to $100K in cash for my very first real estate investment.
Current consideration:
- 1. Start with BRRR in some areas that have lower barrier for entry
- Pros: Could potentially get to the second investment sooner
- Cons: No existing contractor connections. Could run into issues. Good deals are not easy to find.
- 2. Start with a single family home at areas where I could afford and have a stable cashflow
- Pros: Easier to manage
- Cons: Would have no equity to invest in my second property
Some background about myself:
- Have a full-time job ($190K a year income). Financially my full-time job is our main income as a family.
- Job is demanding. Long hours.
- With 3 young kids. One of them is just one year old. And, another one requires more support (special needs).
- Husband working on starting his own business (starting phase, no income)
- On the side, there are some income ($50K a year)
Goal:
- 1. Get to a point of having enough cash flow for me to spend less time on my job and more time with young kids in 5 years
- 2. Have a bit more control of my time.
Hi Ximei! Given your situation (demanding job, young family, special needs child), I would suggest doing the SFH route for your first investment, especially if it's OOS. You can target stable areas that can rent for $2.8k-$3.2k. You'll have quality tenants, minimal hands-on management, and lower potential maintenance issues. With your current plate full, starting with a turnkey SFH lets you learn the ropes with fewer headaches. You can always scale into BRRRRs once you've built a solid relationship with a PM, learned the market well, have enough saved for BRRRR expenses, and have built equity on your first property. Happy to connect and answer any questions you may have.
Hi Ximei, you can check the forums which markets other investors are putting their money. Always look for strong economic drivers like population growth and job market growth. These indicate strong rental demand in a location. That's why I moved from Portland OR to Columbus OH to start with real estate investing for these reasons. In general, the Midwest is getting lots of attention because it's more affordable to get started.
Jimmy Lieu, Red 1 Realty4.9120 Reviews - Investor · Arroyo Grande, CA · Member since 2014 · 1k+ posts · 1k+ votes1y
Hey Ximei,
I totally understand wanting to maximize the impact of your initial investment, and if you're open to taking on a bit more complexity, the BRRRR route can be a game changer. Here's why it might be the right fit for you:
- Accelerating Your Growth: BRRRR is all about using your capital efficiently to keep growing. If your goal is to scale faster and get to the point where your real estate cash flow allows you to spend more time with your kids, BRRRR can help you snowball your investments instead of parking all your cash into one deal.
- Building Equity: With BRRRR, you get the chance to build significant equity upfront by adding value through renovation. If done well, it means you can refinance and use that capital for your next investment—helping you move more quickly towards your goal of creating enough cash flow to change your work/life balance.
- Market Opportunity: Given the current market in some areas, you can still find deals that make sense for BRRRR, though they do take some effort to locate and execute. The key here is finding the right market and building a strong team—especially for things like contractors. It will take extra work at first, but the payoff can be well worth it if you're up for the challenge.
I won't sugarcoat it—BRRRR isn't easy, especially when you're juggling everything else in life. It can be stressful without contractor connections, but the potential returns and ability to quickly grow a portfolio can make it worthwhile. If you can establish a solid network (even virtually at first), and maybe leverage your savings to buy a property with rehab in mind, the reward could be the path you're looking for to make those five-year goals a reality.
Of course, the risks are there, but if you're comfortable and see the upside, it could be worth leaning into.
If you need more insight into BRRRR execution or anything specific about market selection and building a remote team, feel free to ask.
Hope that helps!
- Realtor · Cleveland, OH · Member since 2023 · 340 posts · 215 votes1y
Hi, welcome yes, Ohio is a good place to invest in real estate and if you have any questions please reach out. Best of luck!
- Lender · Clermont, FL · Member since 2020 · 168 posts · 87 votes1yWelcome!
Quote from @Ximei Yue:
I am a Newbie.
Here is a summary of what I want to ask some advice. Any suggestions are appreciated.
I have about $50K in saving and could potentially get to $100K in cash for my very first real estate investment.
Current consideration:
- 1. Start with BRRR in some areas that have lower barrier for entry
- Pros: Could potentially get to the second investment sooner
- Cons: No existing contractor connections. Could run into issues. Good deals are not easy to find.
- 2. Start with a single family home at areas where I could afford and have a stable cashflow
- Pros: Easier to manage
- Cons: Would have no equity to invest in my second property
Some background about myself:
- Have a full-time job ($190K a year income). Financially my full-time job is our main income as a family.
- Job is demanding. Long hours.
- With 3 young kids. One of them is just one year old. And, another one requires more support (special needs).
- Husband working on starting his own business (starting phase, no income)
- On the side, there are some income ($50K a year)
Goal:
- 1. Get to a point of having enough cash flow for me to spend less time on my job and more time with young kids in 5 years
- 2. Have a bit more control of my time.
I was in a similar spot with a high paying W2 when I first started investing in real estate.
I took the principles from BRRRR and Long Distance Real Estate Investing from David Greene's books and went at it. It was a great experience and learned a ton, but my goal was to get out of my day job. While I've been able to get out of my W2 after acquiring 30 properties, I've learned that you still need to generate some sort of active income unless most of your doors are completely debt free. I'm happy to share my experience with you if you're interested. - Investor · New York City · Member since 2020 · 164 posts · 75 votes1y
Great post! Investing in a syndication or fund could be a good fit given your situation.
I started investing in some fix and flips and some smaller residential properties from traditional BRRRs. And I just quickly found out that I wanted something with a little more scale and a little more meat on the bone. So we went into the commercial space and pivoted to self-storage. We like self-storage because even if there is a recession, and people downsize, those people will have a need for self-storage, as evidenced by storage occupancy rates during past recessions. And during inflationary times, our rental rates increase. We're also able to evaluate our rates, and keep pace with inflation, on a monthly and quarterly basis because of shorter term leases.
Now we syndicate larger self-storage deals and work with passive investors. These syndication can provide an 8%+ cash-on-cash return - providing investors monthly cash flow - and a 15-20% IRR over the length of the project. I'd be happy to connect.
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