getting started in BRRRR with $1M cash and $1M+ assets? leverage

[Mike Franco]

I need a strategy.

I'm retired, but never got into the BRRRR. I have $1M cash and $1.5M in paid off real estate assets, no debt, and no 'real' income. 830 FICO.

I want to leverage my assets and start BRRRR to secure retirement for the kids, getting the ball rolling so they can have paid off properties by the time they retire.

$1m cash isn't really enough to buy many cheap properties in Socal. So I want to use the bank's money as much as possible.

How do I get the ball rolling fast?

I don't understand how the numbers work for subsequent BRRRR properties without much income. Hear me out...

I buy a $300k house cash. $50k rehab. $500k ARV. Rent in Socal is ~5% cap rate, so $2100/month gross rent.

I'm down $350k already, and I need to replenish the $350k. 

Will the bank really lend me $350k cash out refi 70% LTV with only $25k gross rent as the only source of income? How do you even fund subsequent BRRRR properties with bank money in my situation?

I have enough assets and want to use the bank's money at the lowest interest rate possible to grow a BRRRR portfolio as quickly as possible.

What realistic timeline am I looking at here?

I'm hoping to acquire 10 BRRRR houses that are $500k ARV, which I expect will all be worth $750k after 30 years, for a total holding of $7.5M at the end of 30 years, which the kids can sell and retire off of.

[Alex Bekeza]

@Mike Franco I'm seeing people actually defy the rule that you can't BRRRR sfrs in CA in areas like Visalia, Bakersfield, Tulare, Fresno, etc. I'd be happy to connect on the phone and chat more.