I came across this community and learned I could BRRRR my 1950s solid though dated 3b/2b SFH, but like most things, I've done it in the wrong order.
I'm almost finished reading Green's "BRRRR". The BRRRR recommended order: 1) buy, 2) rehab, then 3) refinance, 4) rent, 5) repeat isn't how my first property has gone.
I bought in 2016 next to the super hot market then rented it out charging twice my mortgage. Though it’s dated it’s an awesome home.
I’ve now moved back into the house thinking I'd sell it but that didn't feel right. Thanks to this community, I know I have options.
I owe $100k and could sell as-is for $250k. I learned about cash-out refi and have been pre-approved for a new $200k mortgage. The home is so solid that I haven't invested anything yet. Now that the flames of the hot market have crept to my neighborhood, I could get much more in rent, however, all surfaces need updating and very soon all major repairs will need to happen.
- Roof: in less than 5 yrs
- HVAC: (there are two) should be unified and replaced but could last another 5 yrs
- Windows: wooden frames with storm windows and in great shape but need a coat of paint
- Exterior: Asbestos and beginning to fade so needs to be painted
Questions:
1) Would you sell and move on? The house will need major improvements soon.
2) Would you refi in its dated condition for the $200k – making all major/minor improvements totaling up to $60k then use the balance to purchase my next property? BRRRR in a different order.
3) Rent it out again, as is, use the property's cash flow on major issues when they occur, then after a few more years refi when it's in better shape? BRRR in the right order?
Ps, More over-thinking coming soon :)
