Evaluating Strategy: BRRR

[Kyle M.]

For my first and only rental I acquired a property in excellent condition and financed it with a conventional loan.  I have been renting it for a few months and have just been pre-approved to take on another loan.

However, another 20% down-payment on a property in great condition will leave me low on cash (although I would have sufficient reserves).  When I look two steps ahead I find myself running out of cash, and this is a BIG problem.

This had lead me down the path of Buy, Rehab, Rent, Repeat.  I have some questions about this strategy and any feedback would be appreciated.

1.  What is a ballpark cost of a refinance after getting the property re-appraised?

2. Do the best deals come from HUD and Homepath?

3. What is the best second option for finding what homes sell for in a certain area?  I assume that my realtor will get frustrated when I'm asking for sold comps for 10 different properties every day.

Any advice on this strategy would be welcome.