BRRRR, HELOC, or other suggestion?

[Yadriel Carrasquillo]

Soooo this is going to be my first property purchase. Im looking for feedback on how I can do this. If I’m doing it wrong please correct me. And thank you in advance.

I can buy my dad’s house which owes a little less than 60k, but the house is worth a little more than 120k right now. Since the house will be an investment home I’d need 25% down (15k) and closing cost around 2400 that would be a total of 17,400 to get the property. That would make the loan 45k.

First question. Is that correct?

The house maybe needs some painting and getting a renter through a property manager. (Rentometer and 2 property manager companies said the home rents for 1200/mo.)

At this point, if I follow BRRRR, I need to refinance. If I can ask for up to 75% of the home value, that means I can ask for 90k. That means I'd get 45k that I can use to invest since the original loan was 45k.

Second question. Am I understanding this correctly? If so, that’s amazing.

The other question I have is...

Should I do it like this or should I keep the original loan so I can keep lower mortgage payments and get to the equity through a HELOC? (I'd BRRRR with the HELOC)

Let me know if you need more details. And I’m open to other suggestions.

Again thank you for your time you took to help me analyze this first deal.

Killeen. Texas. Dallas. DFW. Hard money. Private money. Rent. Rental. Long distance. Investing. First deal.