My Intro to Real Estate Investing

[Raymond Wilson]

Hello BP universe! I'm new to real estate investing and I'm really absorbing all the new content I've learned over the last month or so. I've been educating myself to buy and hold rental properties. I really like the BRRRR strategy and I'm going to use this strategy with my current primary home. I've ran the numbers a bunch of times and I feel like this will be a good way to take action and get into the game. So here's what I got; I owe $107,000 on my home, on the assessors website it shows a value of $144,000, I've talked to several banks to get rates on a HELOC and I found one bank that will do 85% LTV which comes up to about $15,000 for a HELOC. I feel like this will be enough to make the repairs I need to get the home rent ready and bring the value up to $175,000 when looking at other comps like mine. As long as it appraises for at least this amount which I'm confident it will because Ankeny, IA is booming lately, then I should be able to refinance for 80% of the $175,000 right? Which would be $140,000. That would pay off both loans and give me $18,000 cash. I would also still have the $15,000 HELOC I believe, correct me if I'm wrong. This should be enough to put a down payment on another property and I can rent my current home out for $1350 a month when looking at other comps in the area. If anyone wants to share their thoughts or check my math it would be much appreciated. I'm really excited to embark on this journey!