Best way to accelerate growth

[Soddee R. Knight]

Just some background to help you guys get a full picture of where I am and where I want to go. I am a 29 year old guy who has a law degree and well over $140k in student loans. My student loans have not kept me from getting great 30 year conventional financing. My credit score is 796 and my wife's is 794. We own three rental properties and the home we reside in. After reading posts on here for several weeks, it has become apparent that the BRRRR method is the fastest way to acquire several properties fast. My goal is to replace my income with rental income ASAP.

Property #1

Conservative value (based on others on the same street that have sold) $119,000

Loan amount $59,000

Rent $950 = cash flow $200 monthly

Property #2

Value $59,000

Loan amount $39,000

Rent $750 = cash flow $200 monthly

Property #3

Value $56,000

Loan amount $40,400

Rent $700 = cash flow $200 monthly

Personal home

Value $489,000

Loan amount $380,000 (wife says absolutely no to taking out any equity from our primary residence)

We bought our rental properties the old fashion way (slow) of saving a down payment and getting a 30 year note.

My question is, would it be best to sell property #1 1031 it into a property that would need some rehab then cash out refi and keep it going OR would it be better to use hard money along with unsecured loans to buy a property then cash out refi.

We'm leaning towards selling property #1 and use our own money for the 100% cash purchase and most if not all of the rehab, then if we must, use unsecured loans for rehab just before the cash out refi.

By the way I found a commercial lender who will do a cash out refi with 75% of the appraised value without any seasoning.

The way we see it is once we get the BRRRRRR going we should be able to buy a property every other month.

We've only been investing in real estate for two years and would like to really get the ball rolling so people with more experience than we have please let us know how you would or how you have proceeded.

[Samantha Klein]

I don't know your personal lifestyle but seeing as your rental homes are worth 120k and under and you are living in an almost half million dollar house, I'd sell the house and downgrade to something cheaper and save like crazy.

The time for buying expensive luxury things is when your investments can comfortably sustain them but like I said I don't know your situation but that's what I'd do.