Updated about 4 years ago on . Most recent reply
BRRRR w/ Financing Options
Hello all, I'm new to investing and have been looking for my first deal for the last 3-4 months however haven't found the right one. I'm looking in the Boston and surrounding areas, which is extremely competitive, expensive and challenging to find a multi that will cashflow out of the gates as is. For most places I'm looking at I'll need to do light rehab (paint/floors) or more extensive; adding bed-rooms to stabilize the property to see the returns I'm looking for. But this can get expensive.
I'll need to finance the purchase and having trouble finding less than 20-25% down (not owner occupied), eats up capital. I'd rehab the property with what I have left over, increasing value. However I'm not connecting the dots on how I can get cash out of the property once the rehab is complete in this scenario. A refi, I'd have to leave more in to keep the 20-25% down? What am I missing? Or is eating the rehab costs my best option here?
Any thoughts / ideas on a strategy? Thanks!