Hi all,
I want to BRRRR in $20-$60k outright cash properties and then put in another $20-$50k to flip. I figured I'll need about $100-$150k total to start. I have house hacked a bit, and have flipped 2 houses (homes I lived in). I have invested in education and audio books and of course BP YouTube videos to learn. Right now I know the interest rate is high and all. But I feel the competition is not as much. Here's the thing, I own a rental property in Boston area, It is worth about $700-$749k. I owe 400k on the house, so about 300k worth of equity just sitting there.
1.I can get a HELOC and use the money for BRRRR, the problem is, I can't find anyone that is giving out loans for investment properties, I have tried most banks, up to PenFed, nothing so far.
2. Refi is not an option, my interest rate is 2.75%- when I spoke to a lender, the new mortg if refi'd would be $4,600+ my current mortg is $2.9k
3. I could just sell it and do a 1031 to avoid capital gains
But it is not so simple to just "sell it" I have a solid tenant and they are paying $3.6k/month, haven't missed a single payment and they are so sweet. I cash flow about 300/month because I pay for internet and water (long story on the internet part), yes I know I could increase the rent, but not yet. The area the house is located has schools top 5 on the entire state with 9/10, 8/10 and 10/10 for all 3 levels. Crime is 0.74% per 1,000, home ownership is 88.3%. When I put this house up for rent, I had 30 people in open house, with 8 people ready to lease. Right now, there is only 5 four bedrooms for rent and it is $4.6k/month. Mine is a 4 bedroom with solar for $3.6k. Long story short, it is hard to acquire real estate, and I feel like I should just find other ways to raise money and just let this one sit, but then again, nothing is promised tomorrow. If you were me, what would you do? I want to walk away from 9-5 life and build solid real estate for the next 5-10 years.
