š BRRRR V. Turnkey š”
How did you transition from 20% down on turn key/mostly ready properties to BRRRRing and/or any other sort of buying off market deals cash? Given my market, Dallas, every time I save 40kish my first thought is letās get pre approved for another rental!
1.) Did you guys just sit around until you saved up enough to afford a property + repairs in cash?
2.) Did you kick it off with a hard money loan? (Seems risky for FIRST BRRRR)
3.) Did you buy a bunch of 20%ers until a couple appreciated enough to sell/cash out refinance?
Most Popular Reply
I went straight to BRRRR and have used the hard-money route throughout. If you are working with a good hard-money lender, they will be part of your team and will be a great sounding board to make sure the deal is a good one...if anything, having that extra set of eyes on the deal is less risky in my view. Plus if you are buying right, with a good spread to where it makes sense to even use hard-money, you should have a decent equity cushion to absorb minor missteps.