All Forum Posts by: Madison Heck

@Jaysen Medhurst The situation I outlined was one in which no rehab would be required, so yes I agree that would be more buy-and-hold.

We were planning on putting rehab into the property, but I wasn’t sure the scale of it. It seems like the larger rehab to push the property value up significantly is the defining piece of the first R.

Seems like i have my answer, thank you!

@Jaysen Medhurst I'm asking about the best way to sustain cash flow in the initial property while pulling out cash to use as a down payment on another property.

For the purchase of the initial property, we'll use some example numbers.

$200,000 property value

We would put down $50,000 (25%) + closing costs and have the rest financed by a 30-year mortgage from a bank.

What would be the best way to pull money out of this deal in order to finance the down payment on the next property that we want to purchase? Hopefully while also maintaining decent ROI for the initial property.

Hopefully this phrasing makes a little more sense :) 

Hi all! I am close to purchasing a property in upstate New York with a friend. We are planning on employing the BRRRR strategy and want to outline what our plan is for generating capital for the down payment of our next property (and each one after that).

We are planning to put 20-25% down on this first property, then are debating whether to refinance for cash or take out a HELOC on the first property.

Which option makes more sense for us in your opinion? And is there any amount of time that we will have to wait after we close? I'm seeing 6 months for a refinance in a few places but also that it depends on the lender.

Any help is appreciated! Thanks