Listening to David Greenes BRRR and am stuck on what to purchase

6 Replies

In David's book he said before you establish a team, you need to establish what you want to purchase in real estate. 

Unfortunately, I found that he didn’t explain how to figure out the type of real estate that works for you or at the very least the frameworks and variables required to arise to some conclusion.

Posting in here for guidance. How do I know what real estate properties I should be looking into. Or at least how do I gauge this. I understand that it depends, but a framework for figuring this out would be very helpful.

This is the point that I am most stuck on right now. Do I invest in multi family or single, and so on...

I'm 25 and have never done this before. I have 30k cash that I would consider putting down to start the BRRR journey. My salary is in the 6 figures.

Outlining this to provide additional context in hopes that it gives responses more guidance.

Just as a thought - living in Puerto Rico you have a fairly unique set of circumstances. Have you looked at vacation rentals? With the drastic fall off in vacationing due to Covid I expect we'll see some distressed sales on vacation rentals.

I prefer multis because you have more units in one place, more streams of income, economies of scale, and many other benefits. Singles have their own pros and cons. You, naturally, need to make the decision for yourself. I'd keep reading, finish that BRRRR book, and make your next read something about single or multifamily investing.

@Matthew Metros @Taylor L. I agree with Taylor that Multifamily properties are the best solution. I would look into 3 to 4 unit properties to get started. But I have no clue if they are even in PR. I have seen people with a 3 - 4 property use one or two units as vacation rentals. In putting together a team your local team can help you with choosing the right properties. But being new, look for guidance and confirm their concepts because there are people in the business just looking to make a sell and either do not know or are not concerned about your interest.

I am almost finished with the book Retire Early with Real Estate by Chad Carson. It’s one of the bigger pockets publishing books. I thought it did a good job of giving different techniques and helping people figure out what worked best for their interests, lifestyle and priorities. It’s a quick read and I would put this next on your list if you haven’t read it.

@Matthew Metros whatever seems the most comfortable to you and you are most interested in. Depending on prices in your market and available capital that may also drive your decision. A lot people may start with SFH then progress into multi family but it's all in what your goals are...

@Matthew Metros If you go the SFR route and BRRRR it, if for any reason your tenant leaves then you're out 100% of your income. Meaning that the mortgage payment is going to come out of your pocket. If you buy say a fourplex, and one of your tenant leaves, you're only out 25% of your income and you can still pay the mortgage. Another benefit of buying a multi-unit is that if you buy it cheap and BRRRR it, you can refinance and pull all of your money out, if done right. Hope this helps. What area are you looking to buy in? Out west in PR?