BRRRR How to start?

[Jacqueline Coombs]

II am relatively new to this and want to implement the BRRRR strategy to buy rental properties and build a portfolio. I am meeting with a lawyer next week to get an LLC started ( to protect our personal assets, IRA, 401k) and then from there, I need to get my financing figured out before I buy my first rental. I am hoping to be all set to purchase by early summer. Can someone give me some advice on what I should try to do to get financing? HELOC? Refi? Here is my situation: Own my primary residence, no mortgage Own a second property that is being sold on a lease-to-own ( husband set this up before we were married on a 10 year term with renter/buyer, which we still have about 4 years left on and who knows if they will even purchase.) Break-even on this every month. Equity in both, enough to have down payments for 2-3 rental properties or buy one outright. Where would you start? Thank you!! Blessings, Jackie Botham, GR, MI

[Chad Hovermale]

Step 1: Start attending local REI meetings.

I would recommend that you not rush to refinance your home in order to buy 2-3 properties.   Two reasons for this are:

1.  It's your home.  Protect it.  You are going to learn costly lessons as you begin investing in real estate.  Risking your house to buy investment real estate could leave you in a pinch and having to make difficult decisions about your finances later.

2.  There are different rules to the financing game once you have collateralized multiple properties.  Take time to learn the rules.  Work with a great lender or agent who understands investment RE.

Make sure you understand the limitations of using LLCs.  It can complicate your financing.  I would wait to spend the money on the lawyer.  An accountant that understands real estate would be a more beneficial professional to have on your team.

You have done greatly to get your home paid off.  You are in a terrific position to do great things as you launch.  Best wishes!  Hope to see you around GR.