Downpayments and High interest rate for refi
Hi all! Two questions - would really appreciate everyone’s input and advice.
1) What are your primary sources of funds for downpayment?
I'm holding several BRRR properties and I'm running out of money for downpayments. Historically used my own funds.
Each refinanced property holds ~20% of the new appraised value (post cash out).
2) Given the current interest rate environment, net cash flow on potential BRRR properties I'm now considering is likely to be close to zero (rent minus mortgage payment, taxes and insurance). For context - I'm based in NJ. Is this what other folks are seeing as well?
Most Popular Reply
For downpayment funds, you could look into a HELOC on one of your other properties or look into private money. Most lenders will allow a HELOC for downpayment. In terms of cash flow, I would recommend looking at properties lower in value as often times high property values where rents do not follow end up being why some assets will not cash flow. Best of luck!