Sanity-check my first deal: house-hack BRRRR in Yuma, AZ
First-time investor, market is Yuma, AZ. Want honest critique before I move.
Numbers:
- Primary home: ~$306K value, ~$166K owed, ~$1,038/mo payment (~$80–95K accessible via HELOC).
- ~$17K from a 401(k) loan. Strong W-2, good credit, no deals yet.
- Goal: long-term appreciation + scaling, not max cash flow.
Plan: HELOC on my current home → buy an under-market distressed Yuma house with low-down owner-occ financing (HELOC covers cosmetic rehab) → live in it ~12 mo → rent out my current home (rents ~$1,700–1,900 vs. $1,038 payment, should cash flow) → cash-out refi the new place on owner-occ terms → pay HELOC back → repeat.
Questions:
1. Owner-occupied house-hack BRRRR vs. just a straight investment BRRRR and stay put — which would you do?
2. Yuma is a thin-margin appreciation market. Does a light-cosmetic BRRRR actually pencil here?
3. Too much leverage for deal #1 (HELOC + 401k + new mortgage)? What reserve would you hold?
Anyone investing in Yuma or refinancing in AZ — what am I missing? Poke holes, please.