1 Rental. Decent equity. Now what?

[Mitchell Mims]

Hello all,

New to the group and relatively new to the ideas found here. That said, I would like to get some input for those more seasoned about my situation.

I bought a small 3/1 home in 2015 for $65,000. I fixed it up and lived in it for a while, but now it is a rental for $850/month. My current mortgage is $475/month and I owe $57,000. The house is now worth $100,000 now according to my realtor.

My issue is what to do from here. I could refinance on my rental for $80,000, and have $23,000 cash to use on another property but I don’t know that I have enough capital to move on the next property. I have $6,000 liquid cash among other retirement accounts with ~$8,000.

I could gather all the cash I can and look for a low cost home to BRRRR with my own money coupled with a possible a small alternative loan.

I like the idea of low cost single families which are common in the Florida panhandle where I live and I already own one. With those numbers above, is there a way to BRRRR a $40-60k home with my current assets? If not, which financing option is the most sensible in this situation?

I’m trying to get the ball rolling, just green and unsure which path is best. Don’t want to screw it up before it starts.

Thanks in advance!