Financing using BRRR strategy

[Tiffany Smith]

Hi all,

I was hoping to get some insight on trying to piece together the financing logistics of my current investing strategy.

Background:  

I bought a duplex for $610,000 and have recently refinanced the property into a conventional loan. The property appraised for $920,000 and I was subsequently approved for a home equity loan of $170,000. Using the BRRR strategy I plan on utilizing the home equity loan to purchase and rehab another property with cash. If all goes well, the plan is after the rehab is complete to do a cash out refi...whereby I borrow money against the property's new after repair value to use towards purchasing the next property.

Question:

I'm trying to understand the logistics on how to pay on the 3 loans (the original mortgage on the first property; the home equity loan; and the mortgage from the new property after the cash out refinance) with only 2 incomes (revenue from the original property and the new property).  Any insight would be greatly appreciated.  

Thanks!