BRRRR Increase Line of Credit vs. Cash Out Refi
Looking for advice on a situation I can't seem to settle on. I have been buying rental properties using the BRRRR model. I started out buying and rehabbing using all my own cash. Then I would wait the 6 months for seasoning (required by most banks) before I could do a cash out refi. After doing a few of these deals i was becoming inpatient with waiting 6 months for the seasoning period before I could pull my cash back out of the deal and move on to the next deal. On one of my last purchases after I rehabbed the property and found a renter (2 months time frame) I contacted my local bank and pulled a Line Of Credit using the property as collateral. I was able to close in about a month and now have a LOC to use to purchase another property. I now have another property that I was able to buy in cash that is ready for refinance. I don't know if I should wait 3 months and do a cash out refi or just add it to my existing LOC. If i add it to my LOC it would double the amount and I would still have closing costs for increasing the LOC. The thing I like about the LOC is that I can pull money back out of the deal quickly and if I am not using the LOC then I am cash flowing 100% on my properties tied to it. Please tell me what I am missing or not thinking through...