BRRR without the rehab?
I just purchased my first investment property and got it rented out a few days ago. Since it was my first investment property, I wanted to go through the entire process in the most straight forward way as possible before I tried any more involved techniques such as the BRRR strategy.
I purchased the property for 78k and put 20% down. It did not require much work at all and was pretty much ready to rent out.
If the property appraises for the same 78k I purchase it for, I would assume that means I have 20% equity in the house or about $15k.
Does that mean that if I can find a bank willing to do it, I should be able to take out a home equity loan or a HELOC (not sure which one the BRRR strategy calls for or if it really matters much) for the 15k or 80% of the 15k?
Maybe I'll look for something that needs some actual work for the 2nd property but is the 20% down payment I put into this first property, equity that I can tap into now so I can put towards the down payment of my next property or do I need to have more than 20% equity to be able to take out Heloc or home equity loan?