New to REI. Question about BRRRR.

[Blake Antis]

This is my first post on here. I have been wanting to get into real estate for years now and have been researching a lot more lately. I am very interested in 4 plex's and similar rentals and just found out about the BRRRR method.

I bought a townhouse that I am currently living in, with the intention to use it as a rental property. So this townhouse was my first step into this. It appraises at $70k and we owe about $58k. My question is, could I potentially refinance my townhouse and use that money to kick start this thing and buy another property? 

I am just learning about this stuff and don't know a lot of details but I know this is what I want to do, I just haven't taken the leap.

Thank you for the help.

[Brent Coombs]

Welcome to BP. Great that you're in your own home. At this stage, you DON'T have enough equity to be ready to do the Refi part of the BRRRR strategy, but hopefully your own income will allow you to SAVE for a 3.5% deposit for an FHA-approved Loan for your NEXT primary.

The difference is, you're NOW more knowledgeable about what it takes to be able to Refi all your deposit back again for NEXT time (eg. if your next one also appraises at $70k, you need to have no more into it than $49k (70%), including your deposit. ie. Look for BARGAIN deals. All the best...