Cash-out refi to start investing in STR & LTR

[Wisdom Akpan]

Hello BP family!

This is my first post, so apologies if asking for advice off the bat is frowned upon on here, but here's my situation.

I want to start investing in short-term rentals and long-term rentals, but before I get to that, let me explain my situation. So last year, I moved my mother and brother out of a condo we grew up in our whole lives and bought a house for us to live in. My mother owns the condo we moved out of + it's paid off, so we want to lease it for around $1500. The mortgage I'm paying currently is $3166, but waiting for homestead to bring it down a couple hundred hopefully. I'm 28 and I'm making $60,000 a year.

Now back to the gist of it, the condo itself has a market vaule of $95,000, so I was thinking of potentially doing a cash-out refi to possibly get $70-75k out of it to invest in a STR/LTR. I have access to equity that most investors starting out don't have, so I want to make sure I go about this a solid way and not throw cash aimlessly. The BRRRR method could work in my favor by putting down over 20%, but maybe I could get 1-2 properties for an AirBNB?

Not sure if house hacking could work since I'm paying the mortgage for the house I bought my mother and I'm living here. Open to hearing you guys' input and I appreciate it!

[Melissa Justice]

@Wisdom Akpan,

Welcome to the BP family and no apologies needed! You're asking the right questions and already thinking strategically, which puts you ahead of most first-time investors.

First off - major respect for stepping up to take care of your family and still keeping your eyes on long-term wealth through real estate. That’s not easy, and it says a lot about your drive.

Here’s a breakdown of your situation and some ideas:
Equity in the Condo (Paid Off):
* A cash-out refi of $70K–$75K is a great idea if the rent will cover the new mortgage + expenses.
* At $1,500/mo rent, make sure you factor in taxes, insurance, repairs, vacancy, and the new mortgage payment.
* If numbers still look good, go for it - that’s smart leverage.

What to Do With the $70K:
* You could buy 1–2 LTRs or STRs in cash-flowing markets (Midwest/Southeast).
* Example: Properties in places like Citrus Springs FL, Columbus GA, Birmingham AL, or Akron, OH offer good cash flow in the $120K–$200K range, especially for STRs with local demand.
* With 20–25% down, you could potentially pick up two solid rental properties.

Strategy Options:
Option 1: BRRRR
* If you're up for managing a value-add project, BRRRR could work, but only if you're in a market with strong ARV spreads and a reliable team in place.
* More moving parts, more risk, but also more equity and scalability.

Option 2: Turnkey STR or LTR
* Buy something that’s already rehabbed or new, rent-ready, and easier to manage while you’re still stabilizing your own home and income.
* This could generate cash flow immediately and reduce your learning curve.

Run the numbers conservatively, especially with STRs, since seasonality and regulations vary. Don’t let the $70K burn a hole in your pocket -find the deal first, then use the equity.
Pick a lane for your first deal: One good STR or one reliable LTR in a cash-flow market will teach you more than any course ever could.

You’ve got the motivation, the equity, and the mindset! Now it’s just about the execution. If you ever want help evaluating markets or walking through a deal, happy to connect. You’re off to a great start! 

Best of luck,

Melissa