Rolling Cash... Rental to Rental

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Have a team with 2 other partners in which we will each throw in "X" amount in for start up capital. Plan to purchase and rehab rental 1 with cash. In order for us to get money out for rental 2, what is best? Line of credit from rental 1? Deferred financing? Cash out refi? Also, best practice to create a LLC for us? Thanks for the guidance!

If you think you will use all of the funds up front on a refi then cash out refi makes more sense. If you need the funds in stages then Line of credit will make sense if the difference of interest rates compared to a cash out refi is minimal..

LLC will definitely benefit vs personal names for asset protection and break down of responsibilities on the operating agreement