Hello Everyone,
This is my first post on the forum and I need some advice!
I successfully flipped two houses with the intent to purchase the third to flip and rent with my LLC. My goal is to have residual income and my third house was a small stepping stone in that direction. About two months in and near completion of the third, I heard about the Brrrr method. When I finished the house in 2 1/2 months, I immediately went to work and put the for rent sign up and called the bank. I was then heart broken when I found out that you cannot cash out refi for the full amount of 70% of the appraised value, but only what you purchased the home for the duration of six months. I want to move to my next property, but feel lost on what to do next and asking myself is there a better way? I could pull out only $55,000 after closing cost which is not even enough to pay off the $64,000 I owed in debt. ( I paid the $62,000 for the house in cash from the previous two flip properties).
Let me break down the numbers:
Purchase price $62,000
Rehab Cost $32,000
Family Loan $32,000
ARV $140,000
Rent $1,400
Any help would be greatly appreciated!
