Structured a seller finance deal, Terms: $10,000 down, purchase price 32,000, 3 year balloon payment, 6% interest.
I spent $21,000 in rehab, home has been appraised for $114,000. Although, I have someone who wished to purchase the home through a VA loan, I have denied her because I am more concerned with creating passive income.
Found a renter at $875 a month. I am wondering what method can I use to pull this equity out of the home to purchase more homes through owner financing techniques. Can I use the BRRR method? If not, then what method can I use with the consideration that this is an owner finance deal.
Can you payoff the owner financing early? If so, go to a bank or credit union to do a cash-out refi and draw all your cash out.
You're confirmation! Was totally lingering with that same scenario but I was trapped between doing that or taking the money and purchasing another owner finance deal as a pose to paying off this deal.
From what I've read, I believe that you can use the BRRRR method to obtain a mortgage 70-80% LTV and use that to pay off your seller, then use the rest to repeat this process. Just run the numbers to see what your cash-flow will be after cash out refinancing.
Yep! Yep! You are exactly correct! Will be BRRRRIng in 6 months!
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