Seeking Novice Advice.

[Rafael P Martinez]

I read once: Your first purchase must be the most important one to success !  

I have spent many hours searching what's the best way to start our real estate business and decided to start with single family homes.  Originally our idea was to buy a property in Vegas area <$200K using our savings (20%) and renting out.  As I learnt more I understood that the traditional method is not necessarily the worst, it will be the one that takes the longer for us to recoup our investment. It is our goal to buy a couple properties a year, I have a good job that can help me save for another property but it will take me years before I could put another 20% down.  

After reading Mr. Green's book about BRRRR I understood this was the best way to get investment back or more to reinvest. However I am not still clear how to finance that property, certainly I dont have enough cash to finance the deal and then financing the restoration.

So here are my questions,

Savings (Cash on hand): $40.000

- How do I finance the rest of the funds to complete purchase?
- How do I finance the repairs?
- Where should I apply my savings to?
- Any suggestions of what material to read, hear, or watch so I can improve knowledge?

Finally , it is my understanding that once the rehab is done and I get tenants on the property. I can refinance the property and repay pay the purchase and rehab lenders. How is there money left for me to reinvest? Do I need a down payment when refinancing? 

I truly appreciate all of your comments and suggestions. 

[Rafael P Martinez]

We evaluated the option of buying our primary home, but decided not to follow that route. It is important to mention we live in southern california and $40k for a 10% down wont set us anywhere with the current market. Unless I buy in the desert, inland or seriously far from work. Additionally we live in Orange County and I cannot move out of here for the next 2 years. It will be impossible to find a property in OC for $400K adding that we are a big family and need 3 to 4 beds. 

The more we saved the more we needed in this market, reason why we decided to put our money to work in cheaper states, and postpone our own home. We would like to have a steady source of rental income to cover our own mortgage or bring extra cash while building wealth.