I'm looking to purchase my first property around this time in 2027. I've been keeping up with bigger pockets , doing great amounts of homework and running my scenarios to figure my ROI's and figuring estimates on renovations .
I guess my question would be ? How good of a position should I be in to feel comfortable going forward ? What should the price range for my first property be and also just asking for any general advice from the more experienced people ?
I have $50’000+ of capitol and excellent credit , my problem is I just think I’m more nervous than anything
Rental Property Investor · Atlanta, GA · Member since 2025 · 18 posts · 9 votes
1mo
Mason. You are in a great position. By 2027, you should have $ 50,000 plus in capital, a credit score around 750, a 3–6-month emergency fund, and 3% to 5% of the property value saved for maintenance. If you have control over these factors, you are in the driver’s seat.
Your next task would be determining your acquisition price. The price will be based on your strategy and submarket of choice. If you choose a traditional investment in the form of a single-family rental, you will put down 20 % equity. This would possibly give you a price range of $ 150,000 to $ 175,000. If you face high interest rates, you can refinance later. Aside from the price range, you want to pick a home in a submarket with strong tailwinds such as job growth, population growth, and neighborhood revitalization.
Focus on a property with a price that works for your budget and that has intrinsic value.
Rental Property Investor · Atlanta, GA · Member since 2025 · 18 posts · 9 votes
1mo
Mason. You are in a great position. By 2027, you should have $ 50,000 plus in capital, a credit score around 750, a 3–6-month emergency fund, and 3% to 5% of the property value saved for maintenance. If you have control over these factors, you are in the driver’s seat.
Your next task would be determining your acquisition price. The price will be based on your strategy and submarket of choice. If you choose a traditional investment in the form of a single-family rental, you will put down 20 % equity. This would possibly give you a price range of $ 150,000 to $ 175,000. If you face high interest rates, you can refinance later. Aside from the price range, you want to pick a home in a submarket with strong tailwinds such as job growth, population growth, and neighborhood revitalization.
Focus on a property with a price that works for your budget and that has intrinsic value.
Real Estate Consultant · Ann Arbor, MI · Member since 2022 · 463 posts · 253 votes
1mo
Hi Mason from Montgomery, Alabama-
Congratulations on having $50,000 in capital saved up and excellent credit looking to buy your first Buy, Rehab, Rent, Refinance, and Repeat deal.
You are nervous, as it is your first deal, and had some questions. As far as how good a position you should be before buying your first deal, I would say have as much as possible to account for the downpayment, holding costs, repairs, and the unknown.
Consider starting with a duplex and, better yet, if it is a property you can live in, to buy as your primary residence with less down. This way you should always have a rent check coming in and can fix up and improve the property when a unit becomes available or as you live in one of the units.
As far as a price range, make sure the property cash flows and you can buy a duplex in a market like Lansing Michigan for plus or minus $135,000.
Lender · MD · Member since 2025 · 182 posts · 69 votes
1mo
It sounds like you’re in a good position because you’re planning well in advance instead of rushing into a deal. I’d worry less about finding the “perfect” purchase price and more about making sure your first deal still works if rehab costs, timelines, or vacancies don’t go exactly as planned. Having $50k+ and strong credit gives you options, but keeping enough reserves after closing is what usually makes the first project much less stressful.
Being a little nervous is normal. I'd rather see someone who's prepared and cautious than someone who's overconfident going into their first BRRRR.
I'm looking to purchase my first property around this time in 2027. I've been keeping up with bigger pockets , doing great amounts of homework and running my scenarios to figure my ROI's and figuring estimates on renovations .
I guess my question would be ? How good of a position should I be in to feel comfortable going forward ? What should the price range for my first property be and also just asking for any general advice from the more experienced people ?
I have $50’000+ of capitol and excellent credit , my problem is I just think I’m more nervous than anything
Honestly, you sound more prepared than you think, Mason. Having $50K+ in capital, strong credit, and a year to keep learning puts you in a solid position. I'd focus less on finding the "perfect" first property and more on buying something where the numbers still work after adding a healthy rehab and contingency cushion. Since you're open to BRRRR, don't be afraid to look outside Alabama either. Midwest markets can offer lower entry points and solid rental demand, which may give you more room to make your first deal work. The nerves are normal; just make sure the numbers, team, and exit strategy are solid before you pull the trigger.
Investor · Pacific Northwest · Member since 2026 · 538 posts · 305 votes
1mo
I wouldn’t pick a price range based on having $50K.
Pick it based on how much cash you can afford to still have after the deal closes.
With a first BRRRR, the dangerous number isn’t the purchase price. It’s purchase + rehab + overruns + carrying costs + whatever happens if the refinance comes in lower than expected.
I’d keep a real reserve and underwrite the refinance conservatively. Don’t assume you’re getting every dollar back out.
You’ve got plenty of time before 2027. Start analyzing actual Montgomery deals now. After you’ve run 50 or 100 of them, you’ll know what a good one looks like much faster than you will from trying to decide whether $150K or $200K is the “right” first-property price.
Your first deal doesn’t need to be big. It needs to survive being wrong.
CPA, CFP®, PFS · FL · Member since 2017 · 5k+ posts · 3k+ votes
1mo
@Mason Kilpatrick, welcome. Being a little nervous before the first deal is normal, and with $50K+ available plus strong credit, I’d spend the next year getting really clear on your buy box and downside limits rather than trying to pick a perfect purchase price today.
For a first BRRRR, I'd want enough cash to cover the down payment or purchase, rehab, closing and holding costs, plus a real contingency and reserves after the project is finished. I wouldn't put the entire $50K into the deal just because the spreadsheet says you can. One rehab surprise or lower-than-expected appraisal can change the refinance quickly.
I'd also work backward from the refinance before making the offer. Start with conservative ARV comps, realistic rent, the lender's DSCR/LTV requirements, and what happens if the appraisal comes in 10% lower or rehab runs 15% over budget. If the BRRRR still works, you're in a much stronger position.
From the tax side, if you keep the property as a rental, I’d evaluate cost segregation once it is placed in service. It can accelerate depreciation, but the important question is whether those losses are actually usable in your tax situation rather than just creating a large suspended loss.
Your first deal doesn’t need to be a home run. I’d rather see you buy something understandable with multiple exits and enough cash left over to sleep at night.
Rental Property Investor · Gilbert, AZ · Member since 2016 · 3k+ posts · 4k+ votes
1mo
@Mason Kilpatrick one thing that is helpful is that if you start a post asking for advice or help with a question, respond to the people that are taking their time to answer your question. Many people will state things or ask things and then they leave the thread rather than continue to engage in their own question. You've been given some good ideas of things that could help in your situation. Consider them, respond to them, give more context and ask more clarifying questions. You will get more out of the threads if you do this.
I'm looking to purchase my first property around this time in 2027. I've been keeping up with bigger pockets , doing great amounts of homework and running my scenarios to figure my ROI's and figuring estimates on renovations .
I guess my question would be ? How good of a position should I be in to feel comfortable going forward ? What should the price range for my first property be and also just asking for any general advice from the more experienced people ?
I have $50’000+ of capitol and excellent credit , my problem is I just think I’m more nervous than anything
Well, untrained people do have a lot to be nervous about. There are a lot of rules and there are good things to do and bad thing not to do. At least get some input of what to avoid. It's a long road and there are a lot of twists and turns. People who claim it's a straight road paid for that road with "stupid tax". Mistakes cost money and waste time.
Lender · Florida · Member since 2025 · 684 posts · 246 votes
1mo
Quote from @Mason Kilpatrick:
Hi everyone my name is Mason and I’m in Alabama .
I'm looking to purchase my first property around this time in 2027. I've been keeping up with bigger pockets , doing great amounts of homework and running my scenarios to figure my ROI's and figuring estimates on renovations .
I guess my question would be ? How good of a position should I be in to feel comfortable going forward ? What should the price range for my first property be and also just asking for any general advice from the more experienced people ?
I have $50’000+ of capitol and excellent credit , my problem is I just think I’m more nervous than anything
@Mason Kilpatrick, honestly, being nervous before your first purchase is completely normal—and the fact that you're already doing the homework, running scenarios, and thinking about renovation costs puts you ahead of where many first-time investors start.
From a lender's perspective, I wouldn't focus on finding a specific "right" purchase price. I'd focus on whether the deal makes sense and whether you can comfortably execute the business plan.
With $50K+ in capital and excellent credit, I'd consider a few things before determining your price range:
1. Don't put every dollar into the deal. Make sure you have enough liquidity left after closing for reserves, unexpected repairs, vacancies, and overruns. Having $50K doesn't necessarily mean you should deploy all $50K.
2. Know your total project cost. Don't just calculate the purchase price and renovation budget. Include closing costs, financing costs, insurance, taxes, utilities, permits, holding costs, and a realistic contingency for the rehab.
3. Stress-test your numbers. Before moving forward, ask yourself: What happens if the rehab costs 15–20% more than expected? What if the property takes longer to sell or rent? What if rents come in lower than projected? If the deal still makes sense, you're in a much stronger position.
4. Focus on your exit strategy. Whether you're planning to flip, BRRRR, or hold as a rental, know exactly how you're getting from acquisition to your final exit. A lender will want to understand the same thing.
5. Your first deal doesn't need to be your biggest deal. Your first property should ideally be one where you can learn without putting your entire financial position at risk. There's nothing wrong with starting smaller and scaling once you've successfully completed a project.
6. Get your financing figured out early. Don't wait until you find the property you love to discover what you can actually finance. Talk to a lender now, understand your borrowing capacity, and get familiar with the documentation and requirements. Then when the right property comes along, you're ready to move.
And one of the biggest lessons I've learned working with investors: don't let excitement make the decision for you. Let the numbers make the decision.
You don't have to eliminate the nervousness—you just want to make sure you've done enough preparation that the nervousness isn't coming from being unprepared.
You've got roughly a year before your target purchase. Use that time to keep analyzing deals, learn your local market, build relationships with lenders, contractors, agents, and other investors, and get comfortable saying "no" to deals that don't work.
When the right deal comes along, you'll know.
Good luck, @Mason Kilpatrick. Your first deal doesn't have to be perfect—it just needs to be a deal you can execute successfully.
Real Estate Consultant · Denver, CO · Member since 2021 · 661 posts · 389 votes
1mo
@Mason Kilpatrick Relax! You are doing an excellent job of educating yourself and you are getting some good advice. Flipping properties is not what it used to be and many who have done this more recently have lost money in the process. I would add that once you find a property you are considering, think in terms of possibly renting it long-term as well. Get a no-cost estimate for a cost segregation study and be sure you understand how land value can alter what you can expect in tax benefits. I am available if and when you need advice regarding tax benefits available on a property you have purchased or are considering purchasing.
Investor · Lexington, SC · Member since 2018 · 779 posts · 501 votes
1mo
Mason, the safest way to choose a first-project price is to work backward from the total capital the project can consume, not forward from what a lender will approve. Include purchase costs, renovation, carrying costs, leasing, refinance costs, and a contingency, then keep a separate reserve that is not committed to the plan. For a BRRRR, I would also test a lower after-repair value and a refinance that returns less cash than expected. If the project still works and you can hold it without a perfect refinance, you are in a stronger position. What property type and renovation scope are you currently using in your practice scenarios?
Real Estate Broker · Member since 2024 · 129 posts · 60 votes
3w
@Mason Kilpatrick $50K+ and strong credit is enough to start in Montgomery if you pick the strategy first. BRRRR only works if ARV comps are street-real and the refinance actually pays you back; a lot of "BRRRR" deals here are just thin equity holds after closing costs. I'd underwrite worst-case hold (cash flow after 8–10% PM + reserves) before you chase the recycle. What's your max all-in on deal one, and is the goal pull capital back out or park it for CF?
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