Updated almost 6 years ago on .
Bought First Duplex! Need Financing for future properties: BRRR
Me and my wife bought a purpose built turn key legal duplex in Dec. We now have secured great tenants!
At this point in time we are a little handcuffed towards purchasing future properties...don't have enough equity yet.
I have an opportunity for a join venture where we would purchase single family homes and renovate to a triplex. I need 250K in available funds for down payment/closing costs and renovation cost. At that point we would go back to the bank and refinance and get back most of our initial money. I would need to qualify for a new mortgage of about 580K @ 80% LTV.
Our combined TDS between our two current properties is about 34%. In our area we can go to 44%.
Does anyone have any advice on how to proceed....wait to build equity? then purchase another? I want to buy another property and renovate now and don't want to wait months to build equity.
Thank you.