Looking for some guidance from all of you. I purchased a single family home in 2013 solely for investment purpose and knowing that we would only live in it for 3-5 years and convert it into a rental. The time came (growing family) and we just closed on a new personal residence and paid for it using 80% LTV. The debt service on our rental is $1750 and we are getting $2850 a month rent. I also have an $80,000 HELOC on the property. The property has approx $240,000 in equity in it.
My main question is, how would you tackle the situation if you are looking to build your portfolio in a tough market (Denver)? I am sure there are a few options in regards to the rental, I just want to see what you all have to say about it. Thanks much!
I've been buying off market with private funds/hard money, waiting 6 months, and then doing a refi at appraised value while pulling cash back out. Rinse and repeat until the bank says I'm at my max. The BRRR approach.