My husband was able to consolidate and re-finance the debt after we executed the deal but this was only possible because we bought a VERY modest property of 70k as a learning tool to really see what buying a home in CR would be like. 

The country has massive debts and deficits. 

The problem is, that's not proper accounting because a credit card is a liability, and doing this workaround will reduce your assets rather than increase your liabilities, which totally messes up your balance sheet and debt-to-income ratios.  

You can then get financing either through refinancing the entire debt stack or getting a second mortgage with the same bank that did the first mortgage.  

What doesn’t work today may work in the future.Another challenge with the traditional BRRRR model is the resulting high debt load often isn’t fully covered by rental income, especially in today’s high-rate environment.

@Guillermo PerezPositives:- Equity Built: You now have $70K in equity, which is a solid result for your first deal.Cash Flow Potential: If the property rents well and covers your debt service while providing some cash flow, that’s a win.- Experience: You’ve successfully navigated a purchase, rehab, and refinance, which are the core components of BRRRR.Considerations: - Budget Overrun: Being $27K over budget highlights the importance of tighter cost estimates and contingencies.

I am currently enjoying my 1k monthly income with no debt, and I am nervous about leveraging.  

Thanks BP for giving me the info I need to avoid trash products!

If I could rewind 7 years, I would’ve personally scooped up another property near downtown...prices were more forgiving back then.All that said, I’m curious..if you were getting back in the game today, would a condo with strong amenities but an unpredictable HOA top your list, or are you eyeing single-families for that full control?

Right now my debt is sitting at around 154k (8k outstanding interest payments).