Should I refinance to make the first purchase now or wait?

[Thuan Nguyen]

Hello BB gurus, I have been reading and absorbing as much as I can into this real estate investing since my primary residence purchase 2 years ago. I live in the Pacific Northwest region with median home price around $480k. I am interested in the BRRRR strategy, but currently not in a cash position to start. It would take a few more years to save enough cash (~300k) to start this strategy (per BRRRR by David Greene). With the current market volatility and future rise in interest rate, should I do a cash-out refinance of the primary residence to lock in low interest rate and purchase my first investment property to get my feet wet through the traditional way? Or wait until I have enough cash to start the BRRRR strategy? Your inputs will be greatly appreciated.

[Trevor Fleck]

@Thuan Nguyen I would consider a cash out refinance while rates are low and use that money to invest in a market that provides better cash flow even after a property manager is taken into account. I could make compelling cases for dozens of markets, but ultimately think about some general guidelines like:

• Landlord friendly state
• States with low property taxes
• Markets where the population is growing
• Markets where companies are moving
• Markets that have a desirable feature for those who have remote jobs and can choose where to live (ex. mountains, ocean, lakes, university-town, etc.)
• Focus on the sunbelt all else being equal. Most sunbelt states contain elements I mentioned above and it is projected to be the fastest growing area of the nation for the next 30 years

Happy to chat more if it would be helpful. Good luck!