BRRRR Method Question
Hello Everyone, My wife and I are new members and are excited to be a part of BP!
We currently own one SFH property in Indianapolis. We got this property through Morris Invest (They are awesome by the way) Acquisition cost and rehab for our property came to $45,500. We are hoping it will appraise for $55,000 or more. We used a private money lender to purchase it, with $15,000 of our own money. It will be done with rehab around May 2018 and we are looking to snow ball this into our next property. My question is how do we pull the equity out and roll it into our next property? I have called around to local banks and no one seems to offer a HELOC on investment properties... So would a Cash Out Refi be a good option? Which means a 45-60 wait period with a higher rate than a HELOC.
My private lender is good to help with the next property and the next property so the debt from this first property will continue to transition over to the next property as I acquire another one and they make their return.
Is a cash out refi the best way to snowball into the next investment property?
Is there typically a seasoning period that we will have to wait for? We want to use this method and get 3 properties a year.
If I need to add anymore info that can help explain this situation let me know.
What are your thoughts?
Thanks in advance guys!