Screwed on 1st BRRRR

[Eugene Ricks]

Hello

Just completed my first BRRRR and got screwed.

I acquired a HELCO on my 1st Rental property for $72,000 @ 8.5% then purchased a triplex for $43,000, rehabbed using $24,000. Total invested $67,000.

I used the same mortgage company I purchased my first home with, and had a appraisal completed. The duplex appraised for $144,000. The mortgage company gave me a cash out refinance with an LTV of 70% which is $100,000 @ 5.5% for 30 years.

$67,000 to PAY OFF the HELOC, $27,000 cash deposited In my account, $6,000 for closing cost.

Ok when the HELCO was payed off my account was closed!!!! There for I can't use my HELOC to purchase anything.

This was my first BRRRR my lesson to pass on is make sure you know the difference between paying DOWN and paying OFF your HELOC.

To fix this so I can purchase another property I will need to refinance another one of my rental properties get another HELOC, correct the mistakes I made to BRRRR again.

Please comment and make suggestions

[Joe Norman]

I'm curious as to why you feel you got screwed.  You have a newly renovated triplex and an extra $27k in the bank - celebrate the win!