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Updated over 5 years ago,
Best way to Finance a BRRRR
I found a deal and am working with a friend who has a full service vertically integrated firm to buy, rehab and rent a property
Single family home
Ask = 125, tot after wholesale and closing = 134
Rehab = 25
3-4 weeks rehave
rent 1700-1900
ARV = 190k
I have good credit (> 780) and pretty good assets > 100k cash/savings, 550k in equity in a rental property, and more in roth IRA and in brokerage accounts (vanguard / fidelity).
No debt, no major payment obligations; currently renting @ 2k / month. 6 figure W2 income.
I was thinking refinance once it is rented to pull some money back out and get a better rate, but what is my best approach for the purchase? Traditional mortgage? Some kind of Acquisiton line of credit? Personal line of credit? I could pay cash and then refinance but I would have to use a taxable event to free up enough cash so don't really want to go that route.
purpose: acquisition and/or rehab (I could fund downpayment, rehab and/or the entire acquisiton in cash), trying to understand my best option without having to use all cash; thought being to refinance once its rented.