Down payment on refi when using BRRR

[Fillipe Silvas]

When using the BRRR strategy, is there a down payment necessary when it comes time to refinance with a bank and pay off your hard money? I haven't seen this discussed so maybe I'm just missing something but it's the only thing about this strategy I'm not quite getting.

[Brent Coombs]

Originally posted by @Fillipe Silvas:

When using the BRRR strategy, is there a down payment necessary when it comes time to refinance with a bank and pay off your hard money? I haven't seen this discussed so maybe I'm just missing something but it's the only thing about this strategy I'm not quite getting.

The answer is: no. The dollar amount you can refi will be just the maximum percentage that the Lender allows based on THEIR appraisal. If you don't have enough equity to borrow any more than you already owe on it - then it wasn't a great BRRRR candidate to begin with! Get it? All the best...