Best Method To Finance BRRRR?

[Gil Happy]

Hello,

I have a question about the BRRRR method - actually, it may not be about the BRRRR method, but rather the best method to finance single family homes (SFH) used for rental purposes. Here is my situation:

- My primary residence has about 300k (3.125%) remaining on a 17 year mortgage and has a current market value of about 850k (I currently do VRBO / AirBnb rentals and has an IRR of ~15%).

- I have condo that I own free and clear and is worth approximately 200k (I do rentals on this as well).

- I have a vacation home that own that was purchased 3 years ago for 340k (3.5% for 30 years) with 10% down is now worth at least 380k, but probably closer to 400k (currently rented long term with an IRR of ~15%)

That being said, I'm looking to purchase my next investment (SFH) which would be 3bd / 2ba home in a nearby market that would cost up to 200k. I know how much this home would need to rent for based upon for a decent IRR (+10%), but I am trying to determine the best method to finance.

Since this will be an investment home, it will require 20% down + plus closing costs. My questions are:

- Should I get a HELOC on one of my existing properties to use for the 20% down payment? If so, which property should I use?

- Should I just save up the 20% with my partner instead?

- I would start with a single, SFH and get it rented out, and then purchase a second home, and repeat.

My plan is not necessarily to rehab (unless it is needed), but rather to find homes in areas with low price-rent ratios and rent them out straight away.

Any help or advice is greatly appreciated. Thanks in advance!