Looking for strategy advice

[Lucius Dibble]

I am a recovering general contractor turned investor.

I moved to South Carolina 2 years ago and bought my first investment property in Savannah GA.

It was a full gut rehab, (new roof, siding windows, doors,floors, kitchen, electrical, drywall, drainage etc...) everything cost more than I planned on

I paid all cash (from the sale of my primary residence which I rehabbed in Vermont).

The house has been rented for almost 1 year now. It cash flows great but my cash on cash, as you can imagine, is not great.

My long-term goal is to build a portfolio of rental properties that cash flows $30k/month. I have some cash reserves ($40k) but since I haven’t had a W2 in 2 years I have very little access to traditional financing.

Luckily, the market is very hot and I can probably sell the property now with a $50k profit. But that would not get me closer to my goal and I would still be locked out of traditional financing.

Does anyone have strategic advice on what my next move should be?

[Troy Gandee]

@Lucius Dibble If the DSCR is fair, I would personally suggest refinancing with a no doc HML while rates are low with them. Civic is offering 4.75% on ARMs for rentals. They will have to adjust that rate back up at some point, but if you don't have the W2 income, you're not gonna be able to refinance that for 1-2 years with traditional funds. While rates are low on the non-QM stuff, I would refi now. You could sell and cash out, but that doesn't seem to fit the long term goal. This market is tight, so you likely won't have a ton of luck reinvesting that capital into a stellar deal. Keep in mind that most HMLS are doing 70-75% LTV for cash out.