You can also continue to BRRRR and recycle the same capital over and over AND it's very tax-advantaged when you pull out money tax-free with cashout refis (got to have a smoking deal now OR let time do the work for you).  

I have been using the brrrr method for years and have been recycling the same funds for the past 10+ years.   

I love the idea of recycling my capital to accelerate growth.

Instead of having to split my income to make regular mortgage payments (paying my personal off slower) and set money aside for deals, I can put all my income (and potential future proceeds) into my home which allows me to recycle that money relatively easily without having to refi over and over or find private money to keep the cycle going.

Being a cash buyer is good when you need to move quickly, If you buy the property right you will be in position to pull all you money out in a refi.Doing so will allow to recycle the money through multiple deals.

BRRRR is obviously very powerful, since you can keep recycling your capital.

For the remaining gap and repair costs, I used private money that I recycled from my first deal because it went so well.

The ultimate objective of a BRRRR is to recover 100% of your capital investment so you can continue to recycle the same funds over and over again. 

If you keep doing this, you could keep recycling that down payment to purchase more properties.

If this is the case, you may be able hold on to your 40K as cash in the bank or recycle into the next property.