All Forum Posts by: Cody Bergstrom

Hey @Cade Smith! You’re in a great position to launch your investing journey. Strong income, solid savings, and a clear long-term vision. I am also in my mid-20s and in very similar circumstances. 

That said, I’d encourage you to rethink new construction for your first few deals. While it’s low-maintenance, it’s not ideal for scaling quickly—especially if you’re using mostly your own cash.

Here's why I'd recommend looking into the BRRRR strategy (Buy, Rehab, Rent, Refinance, Repeat):

1. Why, BRRRR > New Construction?

• New builds tie up a lot of cash and don’t offer much upside for equity growth or cash-out refi.

• With BRRRR, you recycle your capital—pull equity out after rehab/refi to reinvest in the next property.

• It accelerates portfolio growth without waiting years to save up another $50K+ for each new purchase.

Even if you're not looking for heavy rehabs, there are light cosmetic BRRRR deals that still work well.

2. What You’ll Need

• A solid local team: Someone sourcing great off-market deals, a contractor/handyman (depending on what is needed), & property manager (especially since you travel).

• Conservative numbers: shoot for 70–75% all-in after rehab to allow a clean refinance.

• Financing: Use hard money or private money upfront, then refinance into a long-term loan once rented and stabilized.

3. Manage Risk Without Over-Leveraging

Your risk tolerance is moderate, which is smart. The beauty of BRRRR is that you're forcing equity from day one. You can still leave a cushion in the deal, maintain reserves, and stay safe while scaling faster.

4. Think of It as a Launch Strategy

You don't have to BRRRR forever. Start with 1–2 BRRRR deals, build equity and experience, then pivot to newer turnkey or even new construction once you've got momentum and passive cash flow coming in.

⸻

You’re doing the right things—educating yourself and thinking long-term. Just make sure your early strategy gives you room to grow. If you go straight into passive, turnkey-type deals with big down payments, you could hit a liquidity wall by property #2-3. 

Let me know if you want help mapping out what a BRRRR deal might look like with your budget.

Hey Khemraj,

Great question, man. I'll tell you this—the BRRRR method can still work if you play it smart. I'd suggest focusing on single-family homes, rather than multifamily, for your first one. Multifamily's great, but SFHs are moving better in this market, and they're easier to refinance with DSCR loans.

I agree with you—MLS is slow, but that just means you need to go off-market. That's where the real value-add stuff is. Think distressed properties with cosmetic upside. Avoid trying to flip it. With flood insurance costs and a high Days on Market, a flip exit is risky right now. Go for a buy, rehab, rent, refi, and hold play. That long-term rental cash flow is what makes it safe today.

And yeah, lenders are scrutinizing deals more, especially on the DSCR side. So make sure you run your numbers tight. Get a clear understanding of what your ARV will be and what the DSCR loan will look like after the rehab.

Hope that helps, man. Sounds like you’ve got a great start—just dial it in, be conservative, and make that first one count.

Let me know if you'd like to discuss the topic in further detail. 

Best, 

Cody Bergstrom
Graystone Investment Group

Thanks, Ryan. Appreciate the support!

With so many Real Estate investment strategies available, it's crucial to find the one that best suits you. This is something that I spend a lot of time wrestling with as I am learning where my personal path in real estate should begin. In this post, I’ll outline some popular strategies to help you make that choice.

1st: The Fix and Flip strategy involves buying run-down properties, refurbishing them, and selling them at a profit. This strategy works well if you enjoy DIY and quick rewards.

2nd: The Buy-and-Hold approach involves purchasing properties, renting them out, and building wealth over time through rental income and property appreciation. This is an excellent strategy if you're looking for long-term gains.

3rd: House Hacking helps you to save costs by living in one unit of a multi-unit property and renting out the others. This enables you to start building wealth while also reducing your living expenses. This strategy, in particular, is very popular for beginners and younger people.

4th: Wholesaling helps you to find great deals and sell them to other investors for a fee. This strategy is ideal for those who enjoy networking and negotiations. Another benefit is that you don’t necessarily have to have a lot of capital to do this.

5th: Real Estate Syndication helps you to pool funds with others to invest in larger income-generating properties. This helps you to diversify your investments and tap into bigger opportunities.

6th: Short-Term Rentals helps you to rent out properties on platforms like Airbnb for higher income. This strategy requires more hands-on management but can be rewarding.

7th: Commercial Real Estate involves investing in office buildings, retail spaces, and warehouses. This strategy is ideal for those with significant capital and a taste for commercial ventures.

It's worth noting that picking the right strategy is personal. Consider your goals, skills, and budget. Many successful investors mix and match these strategies to create a diverse portfolio. It's crucial to keep learning throughout your real estate journey.

However, the most essential part… is starting!