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BRRRR - Buy, Rehab, Rent, Refinance, Repeat

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Tammi Bieniek
Pro Member
  • Rental Property Investor
  • TriCities TN
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23
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Cash out refinance to buy another property with cash. Mistake?

Tammi Bieniek
Pro Member
  • Rental Property Investor
  • TriCities TN
Posted Jul 31 2021, 18:39

Hello! I am closing on Tuesday on a triplex that I'm buying for 100k. I plan on making the 2 bottom units STR nursing professional furnished and the top unit a Airbnb.

Seller is giving 5k back for closing costs. I originally was going to get a hard money loan with renovation expenses of 30k. ARV is around 175-185. All in 125k

I have a 4 plex that I own free and clear and the lender said it would be easier just to do a cash out refinance on that and buy the triplex with cash. I agreed because I just did a cash out refinance with my other 4 plex

But now I’m thinking that maybe I shouldn’t do the cash out refinance on the second one.

I want to convert both 4 plex to STR for traveling nurses and I need to make updates to do that. I also bought a small cabin for 50k cash that I want to make into a Airbnb. It needs about 25k of rehab. ARV on that is about 99k very conservatively.

My question is can I do an immediate cash out refinance on the triplex to get my cash out so I can do the upgrades I want to do? Or any other creative ideas? Thanks!!!

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