BRRRR method help!!!!!

[Will LHeureux]

Bought first rental in February 2021 for $300k in Nashville. Home is now valued at $330k. I put 20% down so mortgage is now at $238k.

When is the right time to refinance and repeat?

How?

Thanks

1 to 40 in 3 years!

[Jason Wray]

Will,

You generally always wait at least (6) months due to the title seasoning requirement in order to use a current appraisal. Unless you purchase all "cash" then there is no wait but you can only use the total cash purchase price as the value. You can actually do a refinance right now up to 80% LTV if this is a SFR (1-unit). That would put the loan amount at $264K based off of the $330K value. That would leave an option to utilize $26,000.00 in equity based off of the $238K loan.

That's not a huge chunk of change but if you can also lower the rate there may be a tangible benefit on top of the cash out.