BRRRR and scaling quickly

[Justin Pumpr]

Hey all,

I'm at a bit of a quandary with my RE investing goals. My goal was to BRRRR multifamily properties in San Antonio, TX as the rents are generally rock solid there and the purchase prices are relatively low. One of the issues I'm finding in terms of numbers with the BRRRR method is the refinancing part. As an investment property the max you can cash out refi on a property is upto 70% of LTV. This means the appraised value of a rehab has got to be VERY high to be able to get my money back out and still cash flow. Even on single family properties the max is 75%. By leaving so much money in the deal, I'm unsure about how to scale this quickly. Like most people I want to achieve financial freedom. I understand this doesn't happen over night, but at $200/door I need around 50 doors to be able to achieve my goals.

My questions:

1) How do you scale quickly when so much cash is tied up in your assets?

2) Is BRRRR on multifamilies the right path, or is BRRRR-ing SFRs actually a better option? There are lots of "it depends" in this I'm sure, but I'd love to hear from people who have successfully managed this and at scale. Is it simply a case of not finding the right properties?

Thanks!