First Purchase looking at a cash offer - financing strategies
So I apologize upfront if this is the wrong section to post to, but it seems most fitting.
We came across an off market deal for 3/2.5 townhome, they are asking 189k cash. ARV is estimated 260k. Repairs seem to be cosmetic only, paint, carpet, counters, etc.
Rent is estimated at 1900/month once its updated and there is an HOA of 480 a month which includes trash, water, sewage, landscape, amenities and cable. My initial thoughts is to just bill back the whole or partial HOA fee to the tenant.
We have +/- 130k saved, and we also have access to our HELOC somewhere around 250k.
Where I'm lost is trying to run numbers on the rental trying to figure a cash/HELOC ratio. Or should we just be looking at using the HELOC only since its OPM and keep our cash for another deal?
Then once the place is fixed and rented, we could refinance immediately since its not a mortgage correct? And once you refinance, your monthly P&I payment will go up making your return less?
The world of BRRRR is all new to me. I've read a few of the bigger pockets books, and we have had a single family rental for about 6 years.
Any insight or thoughts would be greatly appreciated for the newbie!