Investing in next property

[Bruce M.]

Hello Investors,  this is my first post, so I hope that I’m asking the right type of question to get the best answer.  I have a question surrounding using my current property to use as leverage to further invest into Real Estate Investing.
The property that I have is paid off, and I have a renter in the unit (signed a 2yr lease. - been over a year).
I've been researching and researching, and I want to know what my options are. I want to follow the BRRRR process, and invest in multiple properties; especially multi-family properties.
The idea that I had was to use the funds from my investment property to use as down payments on the next investment properties and / or utilize Hard Money Lenders to pursue this goal. The main idea is to use lender funds, and minimize coming out of pocket.
My current property has a estimate value (in South Jersey) of $190k est.

Thank you forum members for taking the time out to read and reply to my post.

[Stephen Kappre]

Welcome @Bruce M. -

If I am understanding the scenario correctly, you own this one property free and clear. Take out an equity line on it so that you can make cash offers on the next property. This is ideal versus hard money in several ways (which we can talk about another time). You may be able to do the purchase and renovations all with that cash. That would be great if possible, but you may have to get some other financing to do the reno work depending on the scenario. The are various options there as well (a topic for another time). In the end you would want to take out a new mortgage on the new property and cash-out what you can (probably around 75% +/- the value of the home). You would take this cash to pay down/off the equity line. The new mortgage on the new property should allow you to still cash flow and also get your money back out, so that you can repeat the process. To infinity, and beyond.