Financing: am I missing something

[Troy Forney]

Hey BP,

We (my wife and I) have been buying properties cash and also rehabbing them with cash. Then we do a cash out refi and pull out most of our original investment. BRRR, right? I do think I have seen it also done with hard money to buy and rehab then refi into a more permanent loan. Now I am at a point where if I continue, buy cash and rehab cash, all of our money (reserves also) will be tied up. As of of now our HELOC is close to maxed out, well some room, about 6 months reserves on the current mortgages. I planned on paying down the HELOC, but now it seems I maybe buying this cash. I have talked to LIMA ONE, it seems it will be quite expensive to finance the rehab and then refi again. Two closings, plus all the fees and interest. Is it worth it to use less of your own capital?

Speaking of Lima, anyone know of a better rate then Limas?  30 year fixed at 7%+?  Looking for a 50k loan.  I know that's not bad considering investment.  Used them on my last cash out refi got 6.95%.  Just not real familiar with all the different financing and the game of moving money around.  I would appreciate some thoughts and suggestions.  Not real creative in this department.