2nd Property...BRRRR or NOT???

[Melba Chambers]

I am currently under contract on a duplex that will bring great cash flow, once it's updated. I am still not comfortable when it comes to the BRRRR strategy. I am thinking after I close using a conventional loan, I will take out a personal loan for the renovations. After 6months or so I will look to refinance it pay off the loan. Does that make sense? I feel like getting a hard money loan with my lack of experience will be difficult and I don't want to jeopardize my closing trying to get it done. Any suggestions would be great!!

[Whitney Hutten]

@Melba Chambers That is a very viable way to do the transaction.  Just know you will be invested heavily equity wise until you refinance which exposes you more to fluctuation and ties up your money and possibly slowing you down to do more deals.  It's a balance for sure.  Using hard money isn't as daunting as it seems, as long as you re underwriting it properly.  

Another option is to check out delayed financing... I have yet to do it because most of my BRRRRs won't qualify for conventional lending anyways initially but check out posts by @Alexander Felice