Refinanced + Equity Loan on Primary Residence to fund BRRR

[Adriana Welborn]

We bought our primary residency in 2017, we recently refinanced (Nov 2021) to get rid of PMI, but did not add cash back. We owe 321K and the market value is estimated between 600-700 (we did not need an appraisal for refinance). Since we've built some equity we are considering getting a home equity loan for 130-150 to fund our first BRRR property.

- Is this doable? And a good idea? (I wish we would have thought of this when we refinanced in 2021)
- Who is the best lender for these type of loans? Credit Union or go back to our original lender?

[Todd Rasmussen]

@Adriana Welborn

We did the same thing, although if I would change anything I would get an actual cash out 2nd versus a HELOC. We thought we'd be be bringing the money back into the HELOC after each deal, but honestly you should build momentum fast and eventually that HELCO will just be equity in your rentals and you'll be paying more for it than if it was a fixed fully amortized loan option. No reason that you have to use the same lender, but you certainly can. I have a contact at elements financial that is amazing, we only stopped using them because we had to go commercial and they don't offer commercial solutions.

Like anything, if you execute well it'll be a great idea and if you execute poorly it will have been a bad endeavor. Send me a message if you'd like our contact for the HELOC.