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Updated about 5 years ago,
Best way to tap into existing equity to BRRR new property?
Greetings,
I'm looking to purchase a rental property with the BRRR strategy. If I don't want to use existing cash at hand, and currently own a home with equity (~300K+) what's the best recommended way to go about it? Heloc / cash out refinance/ Home equity loan?
Rental Property: ~120-180K, will also need work
Equity from home: $300K+, purchased in 2016
My logic is to tap into existing equity, purchase and fix up rental property, refinance then to pay back the loan from existing home equity. Is this a big risk if I can purchase it under appraised value? Is this the smartest way to go about it?
Appreciate any tips and advice