BRRR for Rental - What's the best option?

[Neha Shah]

I'm a Newbie and still learning. Would like to understand more about the refinance in BRRR. We're starting to think about investing in multifamily and I'm wondering what options make sense. We currently have 2 properties, one that we live in and one we rent out. Can you do a cash out refi on a property you paid all cash for?

Property 1: We rent out. Bought at $250k all cash. It's probably worth just under 1m now. This is in a super high growth market and I bet in another 5 years this place will appreciate a ton more.

Property 2: We live there now, but will probably move out in about a year or so. 15yr fixed at 3.15% bought 5 years ago at 650k. Put 70k work into it. Now worth about 1.1-1.2m.

We also have a decent amount of liquid cash in savings, but a lot of that will be going to our new primary residence that we will purchase in about year.

Does BRRR make sense for us? What do we have to think about when doing a cash out refi? Does it make sense to do it on property 1 or 2? Thank you all so much!