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Updated over 5 years ago,

User Stats

26
Posts
7
Votes
Ajay Malhotra
  • Investor
  • New York City, NY
7
Votes |
26
Posts

Best way to Finance a BRRRR

Ajay Malhotra
  • Investor
  • New York City, NY
Posted

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.

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