I have 30 k cash available and am thinking if there is a way for me to get into REI Brrrr?
The thought so far is to acquire cheaper properties in states other than mine using a rental loan which can be upto 75 percent LTV and starting out that way. Is that a good approach? Is Brrrr possible with only 30k available?
Another question is that let’s say this works out, and I get a house for 80k. I put down 20k and get the rest(75%) financed. Assuming there are not too many repairs, how soon will I be able to refinance? Though any bank? And how much?
Thank you so much in advance.
@Rahul Gupta yes, a $30k BRRR is possible. My first BRRR I only put in about $32k of my own money. You would likely need to find a bank that would lend as a rehab property (so they lend you the amount for rehabbing the property - since most rehabs and down payments push you over the $30k limit). You could also find a property in a cheaper and transitioning area that may have properties at ~$40k and with the down payment, closing and rehab you might be able to stay under $30k.
@Benjamin Seibert thanks for the info!
Do you know how much can we cash out from a property and how soon?
Rahul, I think you should do the free course in real estate under the education tab. That will give you some of the background you need to think about the realities of this project. Good luck!
@Rahul Gupta You can find banks that are willing to do the refi as soon as you are finished with your project (no seasoning period) but you may have to look around a bit. As far as how much you can cash out, some banks will do it so that you cash out refi whatever is on your HUD and some will allow you to do 75% of the appraised value. Just make sure you're specific in your questions when you approach the bank so that you know exactly what you're getting into.