with that much in equity have you considered using a HELOC?
or maybe even just doing a good old fashion refinance ?
it seems that taking a route like these would be much cleaner to just pull out your current equity and use the new cash flowing property to pay off or back the heloc/refi
and with the heloc you could repeat this process
Thanks for the reply. What is the difference between a HELOC and an old fashioned refi?
Once set up, you wouldn't pay interest on the heloc until you tapped into it and drew money out. You would be paying back interest and principal starting day one if you did a cash out refi. You would also have a higher interest rate I believe on a heloc and the bank would have more power on calling or canceling the line if a down market were to occur is my understanding.
Is this what BRRR is? Is the refinance a HELOC that investors use to get their next property?
Hi @Will Gile - I'm in a similar situation and wondering if you have any update on how you structured the "buy in" for the other partner?