How do I refi out of my first rental home?
Hey everyone! I'm new here, but have listened to the BP podcasts for a couple years now. I'm a seasoned entrepreneur, but just finally dove into real estate. My business partner and I own a scrap metal business, an insurance business, a construction company, and we're closing on our first rental house tomorrow. It's a 3 BR 2 bath plus a half-finished bedroom in the basement. We're paying $20k cash plus attorney fees.
I'm doing just about all the contracting myself and we're looking at a budget of about $10-12k for materials + 3 weeks of sweat equity. After we finish the repairs and upgrades, we want to refi back out and get as much as we possibly can to put towards another deal we already have lined up.
Do you have any tips for us as we go through the refi process? Would we simply ask for a mortgage or would a HELOC be better? We've had one bank tell us they will consider financing it for us after repairs for everything we have in it as long as it appraises out okay. Is that pretty typical?