Should I just go with a BRRR

Question

So I’m brand new to real estate investing. My wife and I live in a home already so house hacking isn’t an option. I thought I could do some wholesaling to build capital to buy my first investment. Should I just try to find a lender and begin with a BRRR?

Elealeh Fulmaran · Answer

Smart thinking on both paths—wholesaling builds skills and cash, but BRRRR scales rentals faster if you can fund the first one. Two quick moves: talk to 2–3 lenders now about conventional or DSCR options to see what you qualify for with your home equity, and set a tight buy box so you can practice underwriting deals daily without scattering energy.

What’s your rough savings or equity situation, and when do you want to be ready to make offers?

J Castro · Answer

Hey @Matt Settle, welcome to BP!Many first-time investors actually skip house hacking and go straight into BRRR or a small fix & flip using investor-friendly, asset-based lending. These loans are typically underwritten on the property and exit strategy, not your W-2, and credit requirements are often more flexible than people expect.

A practical approach I see work often:

• Wholesale on the side to sharpen skills and build cash  • Meanwhile, get pre-aligned with a lender so you know your numbers  • When the right BRRR deal shows up, you’re ready to act instead of starting from scratch

The biggest mistake isn’t choosing wholesaling vs. BRRR—it’s waiting too long to build the team and understand financing. If the numbers make sense and you have the right support, starting with a BRRR is absolutely realistic.

You’re thinking about this the right way—focus on fundamentals, not shortcuts.

Kyle Hendricks · Answer

I think it would be best to hear what your skills / goals are to really give you an answer. Without knowing why you are investing in real estate and what you are looking to get out of it, it is tough to say what you should do.

Nicholas L. · Answer

@Matt Settle

hello.  just about every step of a BRRRR is difficult, including sourcing a BRRRR-able deal.  the vast, vast majority of properties aren't good candidates for a BRRRR.  so it may take you a long time to find the right property.

and you may need 2 lenders - one for the purchase and one for the refi.   happy to answer any specific questions you have.

Frank Pyle · Answer

Matt welcome to the chaos in a good way. Wholesaling can work but it is really a full on marketing and sales business not an easy first step so just make sure you are honest with yourself about the time and consistency it takes. On the flip side a BRRR is also not the simple option because there is rehab risk, appraisal risk on the back end, and you need enough reserves to handle it if the refinance does not land perfectly.

What I usually suggest is to talk with an investor friendly lender first so you know exactly what you qualify for right now. From there you can decide if your first move is a simpler buy and hold, a lighter value add, or if you really want to jump into a full BRRR. The right path depends more on your capital, time, and risk tolerance than any one strategy being the best for everyone.

Scott Chilton · Answer

Matt, since you’re brand new, it helps to start with a strategy that builds both capital and experience. Wholesaling can work to raise money quickly, but it also takes time to find buyers and negotiate deals, so it isn’t guaranteed income.

A BRRR strategy can be very effective because it lets you recycle your capital, but it usually requires having some funds upfront for the purchase and rehab, and lenders want to see some proof that you can handle the process. Without a track record, it can be challenging to qualify for traditional financing right away.

One approach is to start small. Maybe look for a property under $100,000 in a market where you can comfortably rehab and rent it. You could also explore private or hard money lenders who focus on the deal and your plan rather than just income history. This way you get hands-on experience, build a small portfolio, and start showing lenders that you can manage properties and cash flow.

Whichever path you choose, focus on learning the process, analyzing deals carefully, and making sure you are comfortable with the numbers before committing. Starting small and gaining experience now will make bigger BRRR deals much easier down the line.

JooYung Choi · Answer

Finding a lender is easy if you have a good deal.

Since you are new, I would highly recommend picking 3 neighborhoods / towns etc and analyze properties you see online. In your markets, you will need to learn what renovated / unrenovated properties are selling for. Once you identify a couple unrenovated properties with high ARVs, go check them out and try to estimate the rehab needed (estimating rehabs are tough without experience so I recommend to be as conservative as possible and budget enough for contingency).

With those numbers, see if a BRRRR makes sense (ie: is it a perfect brrrr or you need to leave money in the deal; does the rent cover the mortgage, etc.) Know when to flip the property. Basically, have multiple exit strategies.

To be a good wholesaler, you need to be an expert of your market. You are wholesaling it other investors. The deal has to be good enough with your assignment fee included, otherwise nobody will want it.

Arman Ahmed · Answer

@Matt Settle

You can definitely start with a BRRR if you’re comfortable taking on renovations and managing a refinance timeline, but it really comes down to your risk tolerance and how quickly you want to scale. Wholesaling is great for building capital, but it can take time to get consistent. A lot of new investors start with BRRR in the Midwest because entry prices and rehab costs are lower, which makes the numbers more forgiving while you’re learning. Focus on markets where purchase + rehab + ARV gives you solid equity and stable rental demand, and run multiple scenarios so you’re prepared if the appraisal comes in lower than expected.

Mohammed Rahman · Answer

Hey Matt!

1) I’d start by speaking with 2–3 investor-friendly lenders and seeing what they say. Once you have a clearer picture of what financing is actually available to you, it becomes much easier to decide which strategies truly fit your situation.

2) Wholesaling can be a great way to build capital and really sharpen your deal analysis skills, but it does take consistency and patience to get momentum. BRRR can be an awesome long-term play since it allows you to build equity and reuse your capital, but it also comes with moving parts like rehab timelines and refis.

3) The biggest thing is being honest about your time and energy. Trying to wholesale while running a BRRR at the same time can be a lot, especially starting out, and burnout helps no one. If BRRR doesn’t pencil or isn’t realistic right now, focusing on wholesaling first is still a solid path forward and can set you up well for your first buy-and-hold later.

Hope that helps a bit. Always open to chatting if you want to talk it through.

Should I just go with a BRRR

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