Updated over 3 years ago on . Most recent reply
Live in house hack strategy ideas
Hello!
I am about to do a cash out refinance of my primary residence here in Indianapolis and turn it into a rental. I bought the house for $175,000 in June of 2019 and after putting about $40,000 of remodeling costs into it and letting appreciation do its thing, it should appraise for about $290,000-$300,000 based off comps. My lender is willing to do either 75 or 80% cash out refinance where I should be getting about $60 - 75,000 from that on top of another $35K I have saved up leaving me with about $100K to go after my next investment property.
My question is, should I look for a fixer upper house again that I can move into using 5% down, put another 30-50K in rehab costs into it, do another cash out refinance, and move out after a year? Or should I buy a house that is already remodeled, live in it for a year, move out and buy another property doing this over and over again? Each time I move out, I would be turning the house into a rental.
My gut tells me the first option (the BRRRR method), but I was wondering if any others have done it this way or had any other strategies I should consider.
Appreciate any feedback!