Newbie in Nashville, BRRRR using financing to buy/rehab??

[Heather Colley]

Hi BP people!

I'm trying to buy my first investment property, and really would like to use the BRRRR strategy to build up rental properties at a faster pace. I'm not 20, (or even 30;) anymore.... Therefore, I don't want to wait another 5-10 years to save $100,000+ to pay all cash for my first investment property to start the BRRRR. And I'm new at this, so finding private money may not be possible.

Can I get a conventional loan at 20% down, then do the, rehab, rent....then refinance with a local community bank?

We own our primary residence , however, we moved only 6 months ago unfortunately, so getting a Heloc will not give me the funds I need to buy another house. We have enough cash to put 20% down if the property is <$100,000, but then don't have much cash left to rehab, depending on purchase price. And BTW, not easy finding a property less than $90,000-$100,000 that's NOT a total tear down. (I probably need to widen my search to outside the Nashville area, but that's another post in itself).

Can someone explain the rules for getting a cash out refinance, so I understand what I can and can't do, to even get in the property???

Thanks so much, in advance.

Heather