Just want to make sure im doing BRRR right?

Question

Im a newbie to investing as well to the Brrr method but here's the situation.

I bought my condo for 225,000 with 3% down 3 years ago.

I owe 199,000 to a mortgage @ 3.5% for 30 years.

Property Assessment @ 335,000 (as of now)

Mortgage payment $1200 plus 150 for HOA = $1350 Per Month

I rent it out at $2200 Per Month

My question is should i refinance? and what should i refinance for (amount)? Or should i get a HELOC. I would like to reinvest but im unsure on what to do next. I have only 5000 cash on hand. But i would like to get another investment property. Any help would be great.

Eric Malone · Answer

Hey Vincent,

I ended up doing a Heloc, and now I’m looking into Ohio City to invest in my first multi family hoping to hit my goal month of October to have the keys. I really appreciate you following up.

Vincent Morales · Answer

Hello Eric, first of all good job in buying this asset. Sounds like you are doing it correctly, I would definitely do a refi up to 80% ltv take the difference of cash from equity and reinvest in another property. Of course your mortgage will go up, however you will have earned money and are now able to reinvest in another property.

Vincent Morales · Answer

@Eric Malone wanted to follow up with you on your investment achievements?

Eric Malone · Answer

@Vincent Morales thank you for the great advice.