BRRRR Refinancing Strategies

[Jay B.]

Hi, I want to see if i'm going in the right direction. I have 3 SFR right now and so far has been going pretty well. They avg. $500 ea. in profit after loan pmt , taxes & Insurance and a small amount for maintenance fund are taken out. I'm buying my 4th SFR this month. What i'm looking at doing is refinancing 3 of the 4 into one pkg loan for 15yrs. Taking out the equity ( Not ALL, But a good amount) to put towards other properties and some rehab on the existing ones. Am i on the right track? Isn't that basically the same as just refinancing one at a time? it looks like it makes sense.

Thank You for any and all help.  Jay

[Jaysen Medhurst]

@Jay B., a better long-term approach may be to sell the properties and roll the proceeds into a small multi-family, 10-15 units. This way you can start taking advantage of economies of scale. How much equity do you think you have all together?

My spidy sense started to tingle at "$500 each in profit," that's a lot and makes me think that either you're not properly accounting for all of your expenses or you have so much equity that your ROI is terrible. Either way, run your numbers again and verify that you're actually putting your money to work in the best way.