BRRRR- is there a reason to choose hard money first over bank?
I've noticed that investors tend to use a hard money loan for the first loan for their Brrrr and then get a bank loan?... Is there an advantage to this method?
I have a triplex I have owned for 2.5 years now. It needs major work but all units are rented and it cash flows. I invested about 200k in the purchase of this property, as California is insanely expensive. I want to Brrrr the property, as the ASV, is about 300-400k more than I purchased it for now, and rents would go up significantly. If I just refinance I can pulled the money invested, 80% as bank allows, but the prop still needs about 100k in work.
What is the benefit of going with a hard loan and then a regular lender?