I am a Newbie. Here is a summary—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 - 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!

@Ximei Yue 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!

@Ximei Yue 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.

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.

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.

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.

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!

@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!

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.

Suggestions for my 1st Investment: Should I start with a BRRRR or focus on cash flow?

Ximei Yue

OP

Member since 2024 · 12 posts · 20 votes

1y

Quote from @Kevin Rodriguez:

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.

Thanks so much Kevin for the insight!!! It is very helpful for me to think through options. Financing is definitely an area that I will need more study. Will definitely keep in touch!

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Ximei Yue

OP

Member since 2024 · 12 posts · 20 votes

1y

Quote from @Taz Zettergren:

@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

Thanks so much Taz!! It is very helpful to know different options! Appreciate this info. I will do some learning on this

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Ximei Yue

OP

Member since 2024 · 12 posts · 20 votes

1y

Quote from @James Wise:

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.

Thanks James! Definitely a great point. Will definitely consider this as the most viable option.

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Account Closed

Realtor · Cleveland, OH · Member since 2023 · 340 posts · 215 votes

1y

Hi, welcome yes investing in real estate in is a great decision if you have any questions please reach out. Thanks!

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Lindsay DavisBusiness Member

Real Estate Broker · Birmingham, AL · Member since 2019 · 322 posts · 200 votes

1y

@Ximei Yue,

You mention that your job is demanding—do you think you'll have the capacity to handle a time-intensive BRRRR project on top of that?

If not, buying a turnkey, rent-ready property could be a better first bet. You won’t be able to unlock instant equity or recycle your capital into new deals, but your high W-2 income (and side income!) should allow you to save for your second deal fairly quickly.

Full disclosure: I run a turnkey operation based out of Birmingham, AL—happy to point you in the right direction and answer any questions that come up!

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Jake BakerBusiness Member

Flipper/Rehabber · San Diego, CA · Member since 2020 · 1k+ posts · 695 votes

1y

@Ximei Yue

Pros: If executed well, BRRRR can help you scale faster. With $50K—$100K, you could fund a rehab and refinance to free up most of your equity for the next deal.

Cons: BRRRR often requires more hands-on involvement, especially managing contractors and timelines, which could be challenging with your demanding job and family obligations. With a trusted team, you might avoid delays or unexpected costs.

Advice: If you lean toward BRRRR, build a solid local network. Connect with contractors, property managers, and agents in your target market. A lower-cost market with manageable rehab scopes (e.g., cosmetic fixes rather than full gut rehabs) might be a safer entry point.

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Suggestions for my 1st Investment: Should I start with a BRRRR or focus on cash flow?

Suggestions for my 1st Investment: Should I start with a BRRRR or focus on cash flow?

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