First time BRRRR in planning phase, Need Advice!

[Preeti Sharma]

Hi folks, after spending time on learning about most strategies, I am locked-in on BRRRR. First time real estate investor living in NJ and would do HELOC for financing initial deal. Have few questions to all experts here:

1. How do you get comfortable with out of state deals? Do you drive/fly to far locations?

2. Is starting from land/wood lot a good place to start instead of distressed property? I found good deals on 2 lots in PA raw condition- wooded, will ned well and septic.

3. Suggestions for best HELOC lenders? Do i still need cash down?

Appreciate your support in advance.

Best,

PS

[Nicholas L.]

@Preeti Sharma

1. you don't, i would start locally or within an hour or so of you, so that you can be hands-on. OOS BRRRR where you're entirely reliant on others is not impossible, but is very, very difficult and very, very high risk.

2. no.

3. you can use a HELOC for a down payment, but that just makes it even more difficult to get your cash back out, because you're financing 100% or even more than 100%. typically it's better to have some cash of your own.

hope this helps

have done a couple BRRRRs - it's doable but very difficult