My wife and I are currently working in our professional careers and are working our way into REI. We are currently 2.5 years into a land Installment contract on our 1st multifamily home, with a balloon payment due at the end of 2021. We were recently approved for a VA Loan, and are considering purchasing another multifamily property.
The question is should we refinance the current property we are in take out a home equity loan of credit (which should yield $60K to $75K ) and purchase a BRRRR property instead? My gut tells me we should be better off with 2 cash flowing properties, instead of one and a rehab, but we are also concerned with not getting financing in time to care of the balloon payment we if we commit to our second property with the VA loan.
We welcome any advice as we are new to this venture.
@Wendell HII , the BRRRR will cover any debt obligations and still cash flow when it's complete, right? If so, what's the debate?
It might be worth waiting to refi the first property. I think rates are likely to continue to fall, for a little while anyway.
Jaysen, Thank you for your feedback! We appreciate the encouragement and advice.