Most people are refinancing a BRRR because they are in short term debt (like 12 month hard money used for purchase +rehab financing) or own the property free and clear (they bought all cash) and would get a higher return on equity by leveraging the property and reinvesting the cash out proceeds of the loan to scale the portfolio. 

They unleashed pandemic handouts and loan programs that greased the economy (this was not well thought out, contributed to the inflationary environment we are still suffering from and PPP and ERP loans were flooded with fraudulent loans and benefits)These programs leveraged existing corporate infrastructure (banks and the government had little or no operational involvement). 

A $1700-2000/month rent doesn't get you cash-flow on a fully leverages (after refi) $240k property. 3.

💹*Reminder- The Pearl Development is predicted to create over 11,000 jobs in Mecklenburg County within the next 10 years & will be both a medical education institution and an international headquarters. 

Also be aware of Unrelated Business Income Tax (or UBIT) on leveraged real estate inside of an IRA.Or better yet, since you are self-employed - go with a truly self-directed Solo 401k plan, which would be a much better option and will help you avoid the UBIT on this investment.

I would compare my return with any market, anywhere but 1) this is a different San Diego market than the one I have been so successful in 2) while I am a big fan of leverage, I am not a fan of over leverage.

Whether it’s for startup costs, equipment, or marketing, leveraging your home’s value can help bring your entrepreneurial goals to life.Bottom LineWhether you’re thinking about selling, upgrading, or simply want to understand your options, your home equity is a powerful resource.

There a ton of great DSCR options you can find on the Lenders tab at the top of the page, or connect with an experienced broker who can shop all the best lenders for you and educate you on the best options out there.

What is the best strategy to leverage this for my goal?  

In 2023, we sold it for $245,000, achieving a strong return and leveraging the experience to fuel future projects.