Updated over 4 years ago on . Most recent reply
BRRRR hybrid- LOC and Refi combo
BRRRR is an great way to get started in REI, and build up a portfolio quickly, but it leaves you with large mortgage payments each month. I had an idea to modify the BRRRR strategy; instead of refinancing out the most amount of money possible to start the cycle over, you just refi your original investment out and open a line of credit on the rest of the equity. You then can use the LOC to start the cycle on another property along side the original investment money which you have from the refi working on a another property. This model is difficult to make work, hard to obtain LOC on rental properties, and hard to re-appraise for high enough to allow such large LOC's to buy another property (it could be a few loc's from a few of these properties).
Does this plan make sense to anyone?
Is it feasible?
What are some issues you see with it?
Looking to hear others opinions and learn as well!