Your advice please! new investor, how to skin this cat.
I am super green, well mostly I have owned a home for, 22 years, used some of the equity but not much, it has been a rental for about half of the 22 years. I am in Denver, CO where the market is on fire!!! I have 250k to 300k in potential equity in this house. Do I put it on the market and see what the current bidding wars will beget me? (I cash flow 1300 per month currently.) I have very little income, if I add the rental income I make about 20k per year. Getting a traditional loan would be tricky or would it? Good credit score but not quite 800. How can I do the BRRRR method if I do not have enough income to do the first loan and then a cash out refi? I could sell and reinvest in a smaller market but is that smart if I can't increase my cash flow? (Perhaps I can increase my cash flow) (A lot of realtors are suggesting I sell and reinvest in a smaller market and and they see a trend with more seasoned investors doing just that.). My bank is offering me a 12 month 1.9% heloc settling in at 3.64%. If they will give me 200k on HELOC should that be my loan for a second property? or at least my entrance. What I do see clearly is that I have equity sitting in a property that I should be able to translate into more money/cashflow shouldn't I? I hope I have painted this picture succinctly enough. New to BP and loving it. Thank you everyone!