Making $1,600/Month from Room Rentals — Best Creative Financing to Scale?

[Stephen Wallo]

Hey BP community,

I closed on my first investment property — a townhouse in Las Vegas — on January 17, 2025. The purchase price was $326,000 (original asking was $340,000), and I locked in a 6.875% interest rate. My monthly escrow payment comes out to about $2,200.

I’m currently house hacking: I live in the master bedroom and rent out the two spare rooms at $800 each. While the rooms don’t have private bathrooms or entryways (which are highly sought after in the Vegas market), they’re still renting quickly — I believe I’m ahead of the curve in my area for shared housing.

So far, I’ve done several upgrades to increase both appeal and equity:

• Converted the home into a smart house: smart switches, outlets, thermostat, humidifier, and remote access to both the garage and front door
• In-progress bathroom remodel
• Other cosmetic improvements including new lighting, plumbing fixtures, and mirrors

To finance the renovations, I’ve been strategically using credit cards to capture value and force appreciation. My next step is to:

• Complete a cash-out refinance to pull equity
• Ideally lower my interest rate
• Use part of the funds to buy down points on the next property

My goal is to follow the BRRRR strategy, and I’m currently in that early-but-optimistic phase — where the potential is clear, but I’m waiting for the right opportunity to scale.

Some additional context on the area:

• There are 10+ new housing developments going up within a one-mile radius
• A major public transportation hub is being renovated next to my neighborhood
• A large indoor sports complex has been proposed less than 2 miles away

I earn around $48,000/year (not including rental income) and would love input on:

• Creative ways to get into my second deal while juggling renovation-related credit usage
• Whether a HELOC vs full refinance makes more sense in this situation
• How to maintain momentum and keep scaling while building cash flow

Appreciate any advice or real-world experiences — especially from anyone who scaled up after their first house hack. Thanks in advance!

[Jeb Durgin]

That's awesome you're house hacking and renting rooms out fast. You're making it work even without the en-suite bathrooms, which is a testament to your pricing and strategy.

A quick heads-up on the credit card plan: Be careful not to let that debt get too high before you apply for a refinance. Lenders get a little twitchy about high credit card balances, and it can mess with your DTI. Pay that down before you apply, and your future self will thank you.

On the refinance front: A cash-out refinance is a big, one-time move with closing costs. A HELOC is like having a credit card for your equity—it gives you a flexible line of credit to hit your next deal without starting a whole new loan process. For scaling, that flexibility can be priceless.

Keep that momentum going, but don't feel like you have to rush. The fact that you've got all that new development around you means your property is just getting more valuable. Let that equity simmer a bit while you look for the next perfect opportunity.