Leverage on personal home
Thank you for taking the time to read this post! To give a little background, I studied Finance at CU Boulder and have worked in construction my whole life. So RE investing is right up my alley and I am so pumped to get some projects going. I joined Brandon's 90 day challenge and not a week later, my investor and I put an offer on a home! We close this month and I can't wait to begin my first RE investing project. I even bought a cheap old travel trailer that I fixed up and we are hoping to rent it out for a little house hack!
Now, the reason I'm posting is because my wife and I bought the perfect little house just outside of Park City, Utah about 3 years ago. It is an old farm house built in 1904 that needed some serious TLC. I have done a number of renovations, it looks great and is probably one of the nicer homes on the block now. We got a screaming deal on the house and this whole area is an extremely hot market. We could stay here for many years and be very comfortable and happy. With rising prices it is tempting to just sell it, take the money and pay off my wife's school loans and buy into another house. However, I'm wondering if there is a better way for us to keep the house and use leverage to make the next move. There aren't a ton of comps in the area because no one wants to leave, but there's a few smaller, run-down places that are asking for almost $100k more than what we paid. Is it possible to use the BRRRR principles to refinance and use the equity that we've built into the house to roll into a RE investment? And would we be borrowing against the house or against the equity we've built into the house. My family always said never to borrow against your own home and we are all Dave Ramsey followers but I'm starting to wonder if that's why they never made it to the next step in financial freedom! Any advice is greatly appreciated!
One other quick question I have is for BRRRR investors that are only involved in the financing of RE deals. I want to be a turnkey contractor for investors and I am a paint contractor but qualify for my General Contractors license. Is it worth my time and money to get the full GC licensing or is that overkill? Seems like most of these projects are more cosmetic rather than structural.
Thanks everyone,
Johnny Hunt