Financing our second deal
Huntsville folks,
I bought my first SFR this fall, and it's been great so far, but I'm having some difficulty figuring out the best way ahead for my second deal. My long term plan is to buy SFH's less than 100k in our area (Hartselle), put a little money in them, and keep them as long-term rentals. We have about 20K tied up in our first project, but it's cash flowing nicely and I believe our improvements created enough equity that we may be able to pull our money out soon in a refi. That said, the idea of paying closing costs to access that money seems like a really steep ATM fee, so I'm searching for options to finance the next project that will allow us to purchase the next house and pay for the rehab using less of our own money. We've looked at a LOC with a local bank to finance the purchase/rehab, but the 80% loan to value means we're still out of pocket more than I'd like. We have been in our primary residence less than 1 year, so I'm not really considering a HELOC as a viable option. I'm trying to figure out a proven, repeatable system that we can use at least once a year but I just can't put the pieces together in my mind. Any advice is appreciated. Thanks!