Some 'newbie' questions about B,R,R,R

[Jonathan Barrett]

Hi all,

I've done some searching on the forums as well in relation to my question. I'm just looking for some more information about the method in general as my strategy has been to buy low and hold and I've used cash to purchase properties. That has obviously some benefits but the drawbacks is using most of your reserves and it is then held up in an asset. I've previously investigated drawing equity to purchase another but never had any luck or progressed it given the properties are in Florida but it is something that would have certainly helped me build my portfolio given the amount of equity I have in the properties and that they are owned outright. Now with the market as hot as it is the money will not go as far but I'm still keen on moving forward and shifting my strategy to more of a BRRR method to build passive income but also my portfolio. I guess I'm just a bit nervous given what is involved, and seeking clarification more than answers.

For example, if you draw 250K from a property with a cash out refinance and don't have a property yet, how much do you usually keep in reserves so that you can pay for the loan until you find a property, hopefully with tenants already that are paying the payment for you and a little bit extra. This has been an obstacle for me as I'm not sure how long it would take to find a property, but I also want to kick off the cash out refi process, particularly with values being so high and interest rates so low. 

Also - once you've found a property, how long do you have to wait to do a refinance again? I've seen it's about 6 months typically. How much is your income taken into account when doing a cash out refinance? Is it the same process, similar to a normal loan? Or because you have the equity in the home, it's easier to draw?

Thanks,
Jonathan