Newbie investor question

[Mike M.]

Hello everyone! I was introduced to BP a few months ago and I have read and listened to as much as possible in my "free" time. I'm a busy professional and initially considered picking up some turnkey properties, but in order to keep access to my cash I think BRRRR is the most efficient use of my money. With that, I think the most efficient way to BRRRR is with a cash purchase and cash rehab. I have about $70-80k accessible in IRAs that I can pull out, $20k in savings and just over $100k in equity in a rental property. What makes the most sense for me to use for a purchase- IRA cashout? HELOC? Or just go with conventional financing? I look forward to hearing from you and thanks for letting me be a part of this amazing community! Much appreciated!

[Aaron H.]

I'm not a pro on the IRA stuff, but it comes with a lot of restrictions and hoops to jump through that I'd personally avoid unless it was absolutely necessary.

If you have 100K in equity in another property, look into whether you can do a cash out refinance and get some of that back in cash (and hopefully still be cash flowing). If you can't do that, I'd look into the HELOC. If you find the right property where your 20K is enough to do the deal with conventional financing, that could work too.