First Investment for newbee

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First Investment for newbee

Sanjeet Koppikar
Miami, Miami-Dade County · Member since 2025 · 2 posts · 3 votes

Hello,

Live in South Florida.

Looking to do my first deal as a flip if brrrr.

I have rental property which I will use as equity to fund it.

Saw some post not to do out of state but South Florida market is not the best to invest in real estate. Based on research out of state is better.

Let me know your thoughts and any contacts you can provide.

Thanks.

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James JonesPro Member
Investor · Collierville, TN 38017 · Member since 2017 · 1k+ posts · 687 votes
3w

Be careful putting your one paid-off rental on the line for a first flip. A flip that runs long or sells soft doesn't just cost you money — the HELOC puts the roof you already own at risk. I'd do my first deal as a BRRRR I plan to keep: buy cheap, rehab, rent, refi, repeat. In Memphis I buy single-family under $100K all-in, convert a lot of 2/1s to 3/1s and 3/1s to 4/2s, and rent 3BR+ homes at $1,395–$1,950 on Section 8. ARV comes in $180K–$265K and I refi at 70–80% LTV on DSCR. The rent pays the debt and the house stays yours. Keep the paid-off property as your safety net — not your funding source — until you've got a few deals under your belt.

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  • Matthew MorrowBusiness Member
    Investor · PA - NY - NJ · Member since 2019 · 936 posts · 340 votes
    3w

    @Sanjeet Koppikar Pulling equity from a rental to fund a first flip or BRRRR can work, but I'd get really clear on the risk before picking a city: rehab overruns, holding costs, and who's on the ground for you. Whether out of state is better depends on your team and numbers more than the market. If you share your budget, timeline, and whether you want to hold or sell, people here can give more useful feedback. Are you set on flipping, or open to a simpler first rental?

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  • Sanjeet Koppikar
    OP
    Miami, Miami-Dade County · Member since 2025 · 2 posts · 3 votes
    3w

    The property rental is worth 500k it’s fully paid off. I am planning to take a HLOC loan on the property to fund the investment. I plan to start in 1-2 months . I have a real estate investment company I am currently vetting out. Going though my due diligence asking for specific deals he has closed with referrals and statements.

    I prefer to rehab and sell but his feedback is a BRRRR is a better option as he lives in Akron Ohio.

    Thanks for feedback

    0Reply
  • James JonesPro Member
    Investor · Collierville, TN 38017 · Member since 2017 · 1k+ posts · 687 votes
    3w

    Be careful putting your one paid-off rental on the line for a first flip. A flip that runs long or sells soft doesn't just cost you money — the HELOC puts the roof you already own at risk. I'd do my first deal as a BRRRR I plan to keep: buy cheap, rehab, rent, refi, repeat. In Memphis I buy single-family under $100K all-in, convert a lot of 2/1s to 3/1s and 3/1s to 4/2s, and rent 3BR+ homes at $1,395–$1,950 on Section 8. ARV comes in $180K–$265K and I refi at 70–80% LTV on DSCR. The rent pays the debt and the house stays yours. Keep the paid-off property as your safety net — not your funding source — until you've got a few deals under your belt.

    2Reply
  • Jimmy LieuBusiness Member
    Real Estate Agent · Columbus, OH · Member since 2019 · 3k+ posts · 2k+ votes
    3w

    Welcome, Sanjeet, and a paid-off rental gives you real options. Since you're already vetting the investment company, I'd ask for closed-deal statements from the last year, call two investors who bought from them, and find out who actually runs the rehab and controls the contractor draws.

    On the BRRRR side, a refinance only returns your cash if the appraisal lands near your after-repair number. Plan to leave 10 to 15 percent more in the deal than projected, and make sure you can carry the HELOC payment for four to six months with no rent coming in.

    A flip pays you once and carries sale-timing risk, while a BRRRR keeps the asset, so the right pick depends on whether you want income or a lump sum.

    For comparison, in my experience Columbus has deals with about $20K to $30K of built-in equity at purchase, though appraisals can still come in short.

    Connect with me if you'd like to trade notes as you plan this out.

    [email protected]614-300-7535
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  • Divin KanyamaBusiness Member
    Accountant · Seattle, WA · Member since 2025 · 681 posts · 285 votes
    3w

    @Sanjeet Koppikar Out-of-state investing can work, but combining a first flip or BRRRR with a new market adds several layers of risk at once. The deal should be strong enough to support professional local oversight, conservative renovation estimates, extra carrying time, and a meaningful contingency—not simply look better than South Florida on paper.

    Using equity from an existing rental also deserves careful thought. Before pledging that property, stress-test what happens if the rehab runs over budget, the finished value comes in low, or the sale or refinance takes longer than planned. Protecting a performing asset may be more important than forcing the first deal.

    If you move forward out of state, start by choosing one market and building the team before buying: an investor-friendly agent, reputable contractor, independent inspector or project manager, lender, property manager, and local closing and insurance contacts. Verify track records rather than relying only on referrals, and visit the market if possible. There are good opportunities outside South Florida, but the best first deal is usually the one you can understand, supervise, and survive if the original plan changes. Specific contacts will depend on the market you choose, so narrowing that down should be the next step.

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  • Remington LymanBusiness Member
    Real Estate Agent · Columbus, OH · Member since 2017 · 6k+ posts · 7k+ votes
    3w
    Quote from @Sanjeet Koppikar:

    Hello,

    Live in South Florida.

    Looking to do my first deal as a flip if brrrr.

    I have rental property which I will use as equity to fund it.

    Saw some post not to do out of state but South Florida market is not the best to invest in real estate. Based on research out of state is better.

    Let me know your thoughts and any contacts you can provide.

    Thanks.

    I would recommend networking and building out a solid deal. A good realtor, contractor, lender, and property manager will help you be successful with out-of-state investing

    [email protected]614-541-8475Podcast Guest on Show My Job Laid Me Off, So I Replaced My Salary with Rentals
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  • Brad SeidBusiness Member
    Lender · Licensed in 28 States · Member since 2026 · 206 posts · 70 votes
    3w

    @Sanjeet Koppikar Welcome! Using your existing rental property as equity could be a good starting point. The key is finding the right lending option and making sure the numbers work. If you need help exploring financing for your first flip or BRRRR deal, feel free to reach out. Happy to connect!

    [email protected]248-408-3855
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  • Alfath AhmedBusiness Member
    Real Estate Agent · Columbus, OH · Member since 2022 · 1k+ posts · 1k+ votes
    3w

    @Sanjeet Koppikar FL is a bit tough since hurricane/flood insurance and deals don't cashflow after.

    I've been successful in the Columbus market. I own 30 units here and see a ton of south FL investors buying here because state is landlord-friendly, tons of tech company shift, and cheaper home prices.

    My avg BRRRR deal cost is $100k purchase, $40k renovation and $200k ARV.

    [email protected]614-802-5698
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  • Diana KhanPro Member
    Attorney · 10451 Mill Run Cir #755 Owings Mills, MD 21117 · Member since 2024 · 741 posts · 265 votes
    3w
    Quote from @Sanjeet Koppikar:

    Hello,

    Live in South Florida.

    Looking to do my first deal as a flip if brrrr.

    I have rental property which I will use as equity to fund it.

    Saw some post not to do out of state but South Florida market is not the best to invest in real estate. Based on research out of state is better.

    Let me know your thoughts and any contacts you can provide.

    Thanks.

    @Sanjeet Koppikar, I think you're doing the right thing by checking the investment company's past deals and speaking with previous investors before moving forward. Since you're considering using equity from a property you already own, I'd also want to understand exactly what the company is responsible for and what happens if the project doesn't go as planned. Whether you decide to flip or BRRRR, I'd pay close attention to who controls the renovation budget, approves additional expenses, and makes decisions if the original plan needs to change.

    I'm a real estate attorney, broker, and investor in Maryland, and I've worked with investors where the biggest challenge wasn't necessarily finding a good property. It was figuring out responsibilities when something unexpected happened. A project might need more money, take longer to complete, or require a different exit plan. Those are situations where having everything clearly agreed upon beforehand can make a real difference.

    I appreciate that you're taking the time to do your research, @Sanjeet Koppikar, especially with an existing property involved. The contract and ownership side of real estate investments is a big part of my work, so your situation caught my attention. Happy to stay connected!

    [email protected]240-266-0291
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  • Arman AhmedPro Member
    Real Estate Agent · Columbus Cleveland Dayton, OH · Member since 2024 · 2k+ posts · 971 votes
    3w
    Quote from @Sanjeet Koppikar:

    Hello,

    Live in South Florida.

    Looking to do my first deal as a flip if brrrr.

    I have rental property which I will use as equity to fund it.

    Saw some post not to do out of state but South Florida market is not the best to invest in real estate. Based on research out of state is better.

    Let me know your thoughts and any contacts you can provide.

    Thanks.

    Welcome to the community, Sanjeet! You are completely right about South Florida, high entry prices and compressed margins make flipping or BRRRR strategy tough to pencil locally right now. Doing remote rehabs out-of-state definitely sounds intimidating at first, but pivoting into cash-flowing Midwest markets is how most investors scale successfully without tying up massive amounts of capital. The key to making remote BRRRRs work is having an established local ecosystem already in place, specifically contractor oversight for draw schedules, investor-friendly DSCR lenders for the refinance stage, and reliable property management for tenant placement. Feel free to reach out anytime if you want to connect, swap notes on remote rehab workflows, or get plugged into vetted team contacts out here!

    [email protected]614-418-6081
    0Reply
  • Ashish AcharyaBusiness Member
    CPA, CFP®, PFS · Sarasota, FL · Member since 2017 · 5k+ posts · 3k+ votes
    3w

    Sanjeet, you’re actually in a good position to start because you already have a rental that can potentially help fund the next investment. I’d just be careful about choosing a market simply because the numbers look better out of state. I’d compare the full deal, purchase price, rehab, financing, insurance, taxes, management, rent, and resale value and make sure it still works after all of those costs.

    I'd also decide whether you're really pursuing a flip or a BRRRR before you buy. The two strategies can have very different tax and financial outcomes, so the exit strategy matters from the beginning. Since you're using equity from an existing rental, I'd keep clear records of how the borrowed funds are used as well. That can become important when you're tracking the debt and related interest for tax purposes. And if you start doing flips consistently with meaningful profit, I'd eventually evaluate whether an S-Corp makes sense for the active flipping business rather than automatically putting everything under the same structure as your rentals.

    I'd spend some time underwriting a few markets before pulling the trigger. Your first deal should teach you something without putting the existing portfolio under unnecessary pressure.

    Feel free to DM me, I’d be happy to send over a few resources that might be helpful.

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  • Ashley RigsbeePro Member
    Customer Success & Onboarding Specialist at BiggerPockets · Charlotte, NC · Member since 2023 · 152 posts · 53 votes
    3w

    Congrats on getting started, Sanjeet and welcome to the BP community!

    BiggerPockets
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  • Jordan FioreBusiness Member
    Real Estate Agent · Cincinnati, OH · Member since 2020 · 199 posts · 150 votes
    2w

    Welcome to BP, Sanjeet. You're doing the right homework — vetting the company with closed-deal statements and investor referrals before committing is exactly what separates good first deals from expensive lessons.

    One framework for the flip vs. BRRRR question: a flip pays you once and puts all the pressure on the sale; a BRRRR done well pays you twice (equity + cash flow) and keeps the asset. For a first deal, keeping the asset is usually the safer bet — the numbers just have more ways to recover if something goes sideways.

    Since you're already talking to an Akron-based company, make sure the roles are clear in writing: who controls the rehab budget, who approves draw requests, and what happens if the project runs long or the appraisal comes in light. Ohio is landlord-friendly across the board, which is part of why so many South Florida investors land here — but as a first-timer I'd also look at Cincinnati. I'm an investor-focused agent here, and our small multifamily market pairs cash flow with a bigger, more diversified job base.

    Happy to be a second set of eyes as you compare markets — what matters most is the team behind the numbers, not the city.

    [email protected]513-646-1038
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  • Marco FioreBusiness Member
    Real Estate Agent · Cincinnati, OH · Member since 2022 · 82 posts · 73 votes
    1w

    Sanjeet, you're asking the right question before you borrow against a paid-off asset. A flip pays you once and puts all the pressure on the sale date. A BRRRR done well pays you twice — equity plus cash flow — and gives you more ways to recover if the rehab runs long or the appraisal comes in light.

    Since you're already vetting that company, I'd get this in writing before you commit: who controls the rehab budget, who approves draw requests, and what happens if the project runs long. That's where out-of-state deals usually get messy, not on the purchase price.

    Ohio is landlord-friendly, which is why a lot of South Florida investors land here, but I'd also look at Cincinnati if you want small multifamily with a bigger, more diversified job base than a single-company market. Happy to be a second set of eyes as you compare markets.

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  • Ryan BakerBusiness Member
    Lender · Strongsville / Cleveland, OH · Member since 2026 · 130 posts · 33 votes
    1w

    Hi Sanjeet, using the equity in your rental is a solid way to fund a first flip or BRRRR. The two common tools are a cash-out refinance (one new loan and a lump sum, but it replaces your existing rate) and a HELOC on the rental (keeps your first mortgage in place and you only draw what you need, though fewer lenders offer them on investment properties).

    Another option is pairing a smaller amount of equity with a fix-and-flip loan, so your cash only covers the down payment and part of the rehab and you keep more in reserve. Compare your current rate against what a new loan would cost before you decide.

    Happy to walk through the options on a quick call. My direct line and email are on my profile.

    (Drafted with AI assistance.)

    [email protected]330-548-3340
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