Refinancing to buy my second real estate deal- need advise

[Tiwana Merritt]

I wonder if you can answer this question for me- if I use my house to secure a loan for a second property, how long does my first property have to stay as a lien (I think that's what it would be called right?)? I want to refinance or somehow use the first property to help secure the second one but I don't want my first property to remain as collateral for the bank for years and years. So how do I avoid this? The bank said they can do this and waive my application fees as well as give me the loan for around 3.5%. It sounds like a good deal but I am not sure I want to put myself in that position. Is this what the BRRR strategy is?

[Caleb Heimsoth]

@Tiwana Merritt do you live in the first

Property or not? It’s not clear. If you do, I wouldn’t recommend cross-collateralizing your primary and rentals. What you want to do is refinance the first property and then use those proceeds as a down payment on the second. Otherwise if you default on the one payment you will lose all the properties