Funding For Real Estate Investments

[Arron Paulino]

Hello Biggerpockets,

I currently have done 4 BRRRR's and am having fun doing it on my real estate investing journey! My first and second ones went well and I did have to keep some funds left in the deal when I cashed out during my refinance, but made it seem like a down payment in my mind. This is good, however, I can only do this so many times as I know I will run out of liquid capital to continue funding future BRRRR's to build my real estate portfolio. My third rental property was bought during COVID and my insurance provider dinged me for needing to change my asbestos siding which cost me double what I had planned for the rehab bid. This essentially deterred my ability to scale my portfolio. My fourth property seemed like a reach since I may have overpaid for it during the purchase price, but had a normal rehab budget. In all, I use these experiences as learning lessons for me going forward.

Currently, I have enough funds to purchase another property, but am short on the rehab budget or vice versa. I will not be able to cashout refinance my fourth property until early next year. With how my BRRRR's have gone on the previous properties, I am not sure if a hard money loan makes much sense since I've been leaving cash in the deal after refinancing. Maybe I need to use OPM to fund my deals going forward. I am seeking advice in terms of scaling going forward for my future deals. Purchase prices for properties have been going up for what I'm looking for. Any advice will be greatly appreciated!