Seem like a wise and logical process to take .....
I'm going to briefly lay out where I currently am, in the process of my Real Estate Investing and Rental property journey,
and wan to get other members/Investors advice as to if I should change or consider doing anything different . Thanks in advance for the help and contribution(s) to this thread
So, I currently own a property that produces $1,500 per month in rental income, and my own personal PITI I $500 per month .... for a monthly cashflow of $1,000
From here, I am considering doing either of the following......
1. a Cash Out refi. , and using this money for the either down payment of 20% to purchase a $80,000 - $100,000 property that is an REO here in my area, which would give me a PITI of around $600 a month , and I can easily rent a property in this price range in my area for around $1,100 - $1,200 per month .... for a monthly cash flow of around $500 - $600 per month.
I could then "Hopefully" do a No-Seasoning Cash-Out refi ( since I'll be purchasing the property as an Investor/Investment Property ).... I am a bit unsure if my Lender will do this No-Seasoning Cash Out refi on a property that I put 20% down on as an Investment property ?
2. my second Option / thought is to use my VA loan, and purchase a nicer home / one that will rent for $1,300 - $1,500 a month ( afer the 1 year O.O. rule is meet ) , and plus I can technically get in a " Future " rental for 0% down .
I could find an REO/foreclosed property that needs minimal repairs ( since VA loans are quite strict on the condition of the property in order for it to qualify and get approved for a VA loan ), and then do some updates ... paint / flooring while I live in it for 1 year , and then repeat the process of doing a Cash-Out refi and use the money for a down payment of 20% down on another $80,000 - $10,000 property.... wash ,rinse,repeat
3. The third and last option I am considering , is to use the money from a Cash-Out refi , and purchasing ( All in cash) a Lower end property ... $15,000 = $20,000 ( this includes all the repairs as well ) .
On a property in this price range in my area... there not in the best of areas/neighborhoods .... but the rents are still in the $500 - $600 per month range, and I will at least own the property outright and will cashflow a nice profit per month, while also increasing the properties value ( by painting, re-flooring, etc. ), so that if I ever go to sell... Flip it, I can likely make a $10,000 - $20,000 profit .... so long as I purchase the property for the right price
Anyways, I wanted to get others advice and opinions on the forementioned scenarios and see what others thoughts are.
I really appreciate the help, Thanks so much