Bought my first rental!

[Dwight S.]

Hey guys looking for some insight! Any and all info is greatly appreciated thank you. So I just purchased my first rental property cash. Reason being I'm currently working on a mortgage for my personal residence and didnt think it would be easy to get approved for 2 at the same time. It's probably a C property it's in a decent neighborhood, bad school district but nice 3 br property completely rehabbed ready to go. I have a potential renter who is a long time friend not sure on if that's going to happen or not but either way looking forward I was thinking about in 6 months or so after I have a lease and renter in place of going to do a cash out refinance to purchase another property preferably a better property or at least of the same quality. Was wondering about the process though should I do the refinance before or after I've found another property and any insight or tips or info you could give me on what I'm trying to do which is buy multiple rentals a year the next property I buy I think I want to BRRR it versus doing a rehabbed property to give me more meat on the bone. Pros cons etc thanks guys

[Evan Polaski]

@Dwight S. you will be moving to the commercial side of the bank.  Rates will go up, roughly 1% over agency.  Terms will frequently go to 20 yr, but can find 30 yr.  But, these will be balance sheet loans for the banks, versus selling to freddie or fannie.  Fannie and Freddie only allow 4 mortgages per person.

If you can avoid it, don't go to hard money lenders.  They serve their purpose (I have used for flips) but are very expensive both by fees and rates.