Should I refi my house to BRRR a second property?

[Reed Andrews]

- I am a 30 year old home owner in the dallas area (Fate) and I'm wanting to start my first BRRR. I am a small business owner in the outdoor living industry and have a working knowledge of construction.

I have refinanced my loan to a 15 year with 2.6% interest I owe 188k and market value of my home is around 355k.

I have thought about doing a cash out refi to obtain the capital to purchase a second property for the BRRR process. My great is that sacrificing my rate and terms on my mortgage could be a mistake. On the other hand, it may take me 18 months or so to raise a similar amount of capital.

My estimated mortgage if I were to refinance my current home would still be several hundred dollars below rental value

[Tyler Hodgson]

You’re sitting on a goldmine with that 2.6% mortgage. I’d caution against refinancing out of that unless it’s absolutely necessary. 

Instead, I’d recommend looking into a HELOC (Home Equity Line of Credit). It allows you to tap into your equity without touching that first mortgage. You can borrow what you need, only pay interest on the amount used, and potentially recycle that capital once you refinance the BRRRR.