Rental Property Investor · Santa Barbara, CA · Member since 2021 · 5 posts · 1 vote
Hello everybody. New to real estate investing and the forum here and really happy I joined. After some personal issues I’m financially ready to start investing.
I would like to get your expert opinion:
I currently own a multi-family property In Ventura County, California. The property is comprised of 3 units, a main house, a guest house and a studio. The property is paid off and I got it appraised almost 2 years ago (by a registered appraiser) and it appraised approx $675,000. I also completely renovated the studio 3 years ago. Although I have kept up with repairs, the main house and guest house could use some renovations (kitchen, bathroom, new floor). I currently rent all 3 units. The property is paid off and have plenty of equity in this property to start investing in a Brrrr strategy.
My question is:
Should I refinance, rehab, rent, repeat my property? Or just refinance and go buy an investment property?
It May seem like a straightforward answer but just want to get expert advice.
Rental Property Investor · Dallas, TX (dallas texas) · Member since 2020 · 83 posts · 54 votes
5y
Unless the property is becoming almost unlivable for the tenants I would not repair any thing just to make it look prettier as that usually wont help you too much unless you're trying to sell. I bet the property is at least worth 715k by now. Id do the refinance for roughly 70% to keep a safe equity and get 500k or so to go put down payments on a few homes or you have enough cash to perform 2 BRRRR deals roughly with all cash and no outside money.