Looking for Investment Opportunity
Property Manager · FL · Member since 2025 · 33 posts · 12 votes
Looking for Investment Opportunity
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Basit SiddiqiBusiness Member
Accountant · New York, NY · Member since 2015 · 8k+ posts · 3k+ votesThey both seem un-related, why can't you do both?
Doing #1 might actually help make #2 easier.
If you do a cash-out refinance on your home(Assuming you have equity), you will be able to pull out cash which you can use.
You can then use the cash to purchase a property that qualifies as a BRRR property.
Purchase it with Cash / Hard money and do the proper renovations.
Do you have properties in Jacksonville? Why not look at the Jacksonville market?
Basit Siddiqi CPA4.979 Reviews
6 Replies
- 1yRicardo R.Pro MemberProperty Manager · Michigan Ctr, MI · Member since 2016 · 661 posts · 581 votes
Hey Gernide,
Sounds like you’re weighing two solid strategies—both with their own perks and fit depending on your mindset and market. I run a property management company out of Michigan but on our investment side we buy properties all over and out of state so I'm always in the know (I think lol) when it comes to common markets, here's my advice:
Option A: Cash-Out Refinance-
Why it works: You tap into your home's equity to access capital—often up to 80% LTV via programs like DSCR loans. In Jacksonville, there are lenders offering 80% cash-out terms that let you leverage, while keeping debt servicing manageable.
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Great for: Gradual portfolio growth with less upfront effort—if your existing home’s equity is healthy and rates are reasonable.
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Why it's compelling here: Jacksonville is among the more favorable markets for BRRR due to affordable entry prices and steady rental demand. Areas like Riverside and Springfield see success in this method, as long as rehab adds enough value to justify refinancing.
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Bonus: You may even explore “AirBnBRRRR” in coastal neighborhoods like Jacksonville Beach—capitalizing on short-term rental premiums.
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Strong fundamentals: A diversified economy with military bases, logistics, finance, and healthcare supports consistent renter demand and long-term appreciation.
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Rental dynamics: Although rent growth has slowed a bit, demand remains strong. The city is still affordable compared to many Florida metros, which helps maintain rental interest.
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Neighborhoods to watch: Consider areas like Riverside, Springfield, East Arlington, Beach Haven, Mandarin (for higher-end plays), or Mid-Westside if you’re leaning toward affordability and yield.
How to Think About Your Strategy Fit
Strategy Ideal If... Key Considerations Cash-Out Refi Your primary home has substantial equity and you want passive scaling Useful for redeploying capital with less hassle, but depends on mortgage terms and equity levels BRRR You prefer active investing—finding deals, rehabbing, and building sweat equity Requires capital, reliable contractors, and strong underwriting to ensure refinance works Hybrid Consider starting with a cash-out to fund your first BRRR deal Combines yield potential with equity leverage—but involves both operational and financial commitment I hope this helps, I'll send you a DM.
- Property Manager · FL · Member since 2025 · 33 posts · 12 votes1y
@Ricardo R. thank you any in the Palm bay area that in melbourne fl
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- 1yBasit SiddiqiBusiness MemberAccountant · New York, NY · Member since 2015 · 8k+ posts · 3k+ votes
They both seem un-related, why can't you do both?
Doing #1 might actually help make #2 easier.
If you do a cash-out refinance on your home(Assuming you have equity), you will be able to pull out cash which you can use.
You can then use the cash to purchase a property that qualifies as a BRRR property.
Purchase it with Cash / Hard money and do the proper renovations.
Do you have properties in Jacksonville? Why not look at the Jacksonville market?Basit Siddiqi CPA4.979 Reviews - Property Manager · Orlando, FL · Member since 2016 · 479 posts · 277 votes1y
Quote from @Gernide J Antoine:
I'm based in Florida and currently exploring options to either do a cash-out refinance on my home or pursue a BRRR strategy. I'm looking for advice and potential opportunities in the Jacksonville market that make sense from an equity and long-term investment standpoint.
If anyone has insights, connections, or deals that align, I’d love to hear your thoughts.
I think finding BRRR opportunities right now are extremely tough to make work. Reason being your yield on a rental is not much higher than interest rates right now, so the LTV you could take out is very low.
If you found a property and could be all in at $250k and your rent was $2,000 with only a 35% expense ratio, that would be only $15,600 in NOI a year. If you tried to take out a $250k loan at 7% that would be $19,959.07 in annual mortgage payments for a 30 year amortization loan, which no bank would give you nor would I suggest anyone do.
At $200k all in price for the same with everything else the same it would be $15,600 in NOI and $15,967.26 in annual mortgage payments, again a slight loss or basically breaking even.
In multifamily, lenders typically want to see a 1.25x DSCR, meaning NOI/Mortgage payments should equal 1.25x, which I also think is a solid rule to go by. Using that, you would rouhgly have to be all in at $155,000 into the project to achieve that. Your NOI would be $15,600 and your annual mortgage payment would be $12,374.63 and results in a 1.26x DSCR.
Now imagine we took this last scenario of a 1.25x DSCR with a 7% 30-yr amortizing loan and $2k in rent, but instead of a 35% expense ratio we do 45%. You would then have to drop your all in price to $132k to meet that 1.25x DSCR. Your NOI would be $13,200.00 and your mortgage payment would be $10,438.39 per year.
So let's take the least conservative approach and say you needed to be all in at $200k roughly, I think it is extremely hard to find properties like this widely available where you don't have to spend a ton of money to renovate, account for all the carrying costs like hard money loan, taxes insurance, your closing costs to buy it and closing costs to refinance it, and also add in a contingency.
Maybe you could find them by doing a widespread direct marketing campaign, but then you would need to add those costs to your property to properly account for it all.
Now I'm not saying it's impossible or people aren't doing it, but with interest rates as high as they are, with rents having dropped the past couple of years, with construction costs staying elevated after skyrocketing in 2020, it's just not what it was in 2015-2019 in Florida at least.
If I'm wrong please let me know, because I would happily scoop up properties to BRRR and hold for the long term, I just don't see it.
- Member since 2023 · 34 posts · 6 votes11moI got one in Missouri I don’t need anymore if you’re looking there
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