Moving Forward Advice

[Jacob Borstad]

Hey Y'all!

This is my first post in the BP forum! I am hoping to get recommendations for how to proceed from where I am now and to speed up the process. 

In brief, we purchased a single family in 2020 with a walk out basement. We added a bathroom, laundry, and kitchen to the basement and made it into a studio. Currently, that house is rented as two doors and cash flows $800 a month. In February of 2025 we purchased our neighbor's house and did a BRRRR on it. We will refinance in February and hopefully walk away with about 30-40K in the cash out refinance. We believe that the new mortgage on the BRRRR property will be about $1600 and provide about $300 in cash flow. When we move out of the house we would expect to see a cashflow of $1100 total for both properties.

 We live in a fairly expensive area and are trying to decide on how to use the refinance money. We have thought that it could be a good move to find a multi-family and move into one unit or potentially find another single family with potential to convert it into a duplex. I would appreciate thoughts on how to continue forward. 

Thank you in advance!

[Drew Sygit]

Congrats on what you've built so far!

What do you have in reserves to cover mortgage payments in case of unforseen issues?
- You may want to get HELOC on the owner-occupied property while you can, to tap for that emergency.

Hopefully, you've also checked into local zoning requirements with the basement conversion.

Be careful of chasing cashflow! Many investors have transistioned to Class B & C rentals - only to regret it once they experienced dealing with the corresponding lower Class of tenants.