What would you do? Have about ~ $350k in equity across 2 rental properties bringing in $5450/month with 15yr mortgages. Rental 1 (worth $310k) will be paid off in 7yrs. Rental 2 (worth $615k) will be paid off in 13yrs. We lived in these properties before moving and renting them out. Planning on increasing rents next year and will bring in an extra $450. Goal is to get to 10-15 doors in the next 3-5yrs. How would you go about leveraging the equity into more properties?

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Have you read into the BRRRR method? Basically refinance, pull your equity out, and buy rentals pure cash. Then rinse and repeat. What’re your thoughts on that? Seems a little risky to me based on folks I’ve asked but apparently it works to scale and add speed to your property acquisitions.

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Honestly BRRR doesn’t make that much of a difference. Just buy/borrow when you want to, as long as you can secure the financing.

The real advantage of BRRR is when your LTV doesn’t meet lending criteria, so it’s the equivalent of a giant down payment in that respect

What kind of cash do you have? You can always buy more. I’d continue to leverage as you are.

One option is 1031 exchange to sell a property and take the funds. You may be cash flowing well so may not want to go this route.

As others said you can pull out equity from rentals. I’ve looked recently and interest rates are a bit higher and cash avail to pull is a smaller ratio to loan value but do able. Note it will increase your Debt ratios so you need a high monthly income as you start to do more of that.

1031 is on the chopping block in a some proposed tax reform bills. If you’re banking on this I’d look to sell sooner than later.

Most banks will either lend based on property LTV, or against an entire portfolio.

If LTV, just make sure each individual house holds up to financing criteria. Then you’re only on the hook for down payments.

Your goals are aggressive, and I suspect the limiting factor will be cash for down payments. Your properties won’t be cash flowing tremendous amounts after all expenses, I’d imagine, to the point where that accelerated a heavily leveraged strategy

Low on cash at the moment. Probably just sit it out a bit until can build up RE cash reserves. Interest rates are just so low rn. It's very tempting.

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