Updated 12 months ago on . Most recent reply
Multifamily or single family
Hey guys, I"m looking to talk with some experienced investors. I currently have several single family homes. Been investing for a couple of years now. My goal is to go into multifamily investing. We currently have a property that is paid off and we just did a full remodel on the property and will be worth around $225K - $250K. It will be rented within the next 2 months. My question is, do we pull all the cash out of it and put that down on a multifamily or do we do a LOC on the property and basically do the BRR method and buy/rehab/refinance and pay the LOC back and just keep repeating those steps? Any tips or suggestions would be appreciated!
Most Popular Reply
Or you rent for a while and 1031?
Depends how big a MF property you want to buy.
At a $200K value maybe you refi for $150,000?
At $250K value maybe you refi for $200,000?
Figure you will need 25% to 30% to buy 5 units or more.
With the down payments above you are looking at $600K to $700K.
What kind of MF could you buy at that price range?
Would there be better options at $800K to $900K?
as @Seth McGathey mentioned the interest rate matters.
Great to borrow against an existing property to buy another property if you can get 4% debt but at 7% debt not so sure.
Hope this helps.
Arn