Using Va to start brrrr strategy

[Brandon McDowell]

My fiancé and I are buying our first town home. The asking price is 114000 which is below value. I plane on purchasing it for no more than 108000. My question is how long after purchasing this home using va can I refinance and take a line of credit out to use as a down payment for our next property?

[Account Closed]

@Brandon McDowell Fairly quickly if you don't mind moving. The VA is pretty good about doing multiple loans up to the ceiling of your award amount.

[Brandon McDowell]

Fairly quick as in weeks or months?

[Mitchlyn D.]

You should be able to refinance right after.

Things to keep in mind:

(1) Refinancing will require you to pay closing cost. Couple thousands of dollars

(2) Are you going to receive a lower interest rate with the refinance?

(3) How much equity will you have built up prior to the refinance?

All of this will determine if it makes sense to do a cash out refinance. 

Mitch

[Donnie Patel]

Agree with @Mitchlyn D.. one of the mistakes i was making was forgetting to calculate the cost of money. i.e. cost of my own money when i put it down. BRR only makes sense when you are using Hard Money Lender at high interest rate -> rehabing and then renting. Before renting you are taking that hard cash out and paying it back to the lendor. Timing is the key and its the math you have to consider.