What are my best refi options to set up for another property?

[Robert Kohnfelder]

Hello All,

I recently closed on a fixer-upper behind my first property, a duplex that was owner-occupied before we moved out and bought a SFH. We now rent that duplex out for a pretty penny, and the new SFH/investment property is located directly behind it, sharing a property line (overgrowing across it!) and an adjacent empty lot as well. I bought the FSBO property by making a great connection with the owner and being somewhat relentless from Day 1 after seeing the for sale sign in the yard. With a wedding and other expenses looming, we weren't necessarily in the market for our next investment (although I am always willing to consider), but this opportunity was too hard to pass up. Having said that, we put 20% down and secured financing in order to make it happen. Anyway, with a strong feel for our area's rental market and a desire to keep the property for the foreseeable future, we have firm plans to rehab the property and keep it as a rental. I am extremely confident that this was a sound investment based on many factors, including the purchase price, which came in much lower than appraisal.

So, my question(s) are: once we put the cash into rehabbing the property and have solid rental income here in a few months, what is my best option for refinancing in this scenario? Just to offer some ballpark numbers... Assume we purchased the house for $60,000 with 20% down and plan to spend around $20,000 in order to rehab it to where we'd like. Let's say the house will have an ARV of roughly $150,000... Being somewhat familiar with BRRRR, my goal IS to purchase another rental/investment property (and many more) as soon as possible, but with some upcoming wedding expenses, I just want to know a few options that I can discuss with a bank/lender. Any recommendations would be awesome -- let me know if there are any questions I can answer to help.

Any responses at all are greatly appreciated in advance!

Happy Holidays!