Growing means refinancing or selling in order to acquire more assets.

You are still exiting with a refinance and thus the terms wouldn't change on the exit whether you are buying in cash and then refinancing versus doing a construction loan and then refinancing.

@Keith AngellFrom my experience, both a HELOC and refinancing have their advantages depending on your goals.

Or even refinanced it to them?

Bought undervalued (market value of 265k); refinanced about 1 year later to contribute to next property purchase.

The BRRRR strategy is a systematic approach to real estate investing that revolves around five key steps:Buy: Purchase a property, often below market value, that has potential for appreciation and improvement.Rehab: Renovate the property to increase its value, make it livable, and improve its rental potential.Rent: Find reliable tenants who will pay rent, allowing you to generate consistent cash flow.Refinance: After the property is rehabbed and rented, refinance it to pull out the equity you’ve built through the renovation.Repeat: Use the cash obtained from refinancing to fund your next investment property, starting the cycle again.Step-by-Step Breakdown of the BRRRR MethodLet’s take a closer look at each stage of the BRRRR strategy to see how it works in practice.1.

I was told by another investor that I will run into a seasoning problem, but i don't see how if i don't plan on refinancing.

The main issue I have is contemplating the baloon payment at the end of the 2nd year and refinancing the remainder with a bank...how can I compute that into calculating the IRR?

If so, is there a timeline of when that refinancing can happen?

I've been doing some light reading, and it sounds like refinancing that property and using the proceeds to reinvest elsewhere might be a better option.