All Forum Posts by: Ryan Graham

Thanks Tim! I really appreciate the response.

Hello everyone. I'm new to BiggerPockets and this is my first post! I've recently finished reading Brandon Turner's "The Book on Rental Property Investing" and am about 50% through David Greene's "BRRRR." I have decided that I'd like to pursue the BRRRR strategy. Although I have some cash saved up, I don't have enough for my first deal so am considering some options with my primary residence in order to have access to additional capital. However, I'm struggling to decide the best method to pull equity out of my home, specifically for the purposes of starting out with the BRRRR strategy. It seems there are essentially three options for me to choose from. Here is my take on each of them:

1) HELOC: a reusable amount of credit with a variable rate.

2) Home Equity Loan: a 2nd mortgage on my home, only for the equity, with a fixed interest rate

3) Cash out Refinance: replacing the current mortgage on my home with a new mortgage for 75% - 80% of the current value, and receiving the extra equity in cash.

My specific question is, which is these is the preferred method when using the capital gained to begin investing with the BRRRR strategy?

Some additional info about me that may be helpful:

1) I have significant self control and am not concerned about spending the money away that I would get from any of these options. I would set it aside just for the purpose of BRRRR and nothing else.

2) Between the equity in my house, and the cash I already have saved, I will have enough to begin my real-estate investing BRRRR journey if I can find the right deal.

3) The interest rate on my existing mortgage is 4.5%

I'm very anxious to hear your thoughts and sincerely appreciate any help or advice you could give.  Thanks!