BRRRR; Need Help Planning my Next Move for the Next Property

[Jalen Leichman]

So, I've hit a wall in my BRRRR journey and I need help moving forward. I'm just about done with the first property and I need to help planning how to get the next one.

So far I've....

BOUGHT - I used and FHA loan to buy an owner-occupied Duplex. Bought it for $127K, I only had to put down 3.5% which was about $5K

REHAB'D - I spent a year renovating the upper unit myself (the bottom unit came with tenants, so I couldn't do much there). About $26K went into renovations.

REFINANCED - I took out a HELOC on the property. After the renovations it appraised for $180K, I was able to access 90% LVT, which was about $35K. I was able to pull all my money out and then some.

RENTED - I have tenants moving in next month, January 2022. After all expenses are paid I'll be cash flowing about $200 a month.

REPEAT** -  This is where I need help. I now have $35K to go into the next property, but I'm not sure how to use it. I want to to use some of the $35K as a down payment for another multifamily investment property, and the over half of it towards the renovations. I asked my current lender for low down payment options for investment properties, but unfortunately down payments for investments require between 20-25%, even if owner-occupied. If I have to put down 20-25% that'll eat away most of the funds from the HELOC and won't leave that much over for renovations. This is the dilemma. An alternative I've thought of is going for a single family, owner occupied loan, which I'd only have to put down 5%, but I'd be locked into that single family for a year before I can look for the next property, and I want to buy at least 2 more properties within the year, and I'd rather they'd be multi-families. I've heard of those Freddie/Fannie Mae loans out there that might be accommodate what I'm looking for for around 15% down, but not entire sure about how that works.

What's the best way to use this $35K to continue on my BRRRR journey? Any seasoned investing Pros of there that can spare a few words of advice? I'd appreciate it. Thanks!