BRRRR Refinance

[Kevin Izquierdo]

Im a little confused with the Refinance part of this method. Can anyone explain this process to me? What does it mean? How is it done? What are the rules? 

[JD Martin]

Quick and dirty, my way: buy property for cash, rehab the property, wait 6 months (or if a great deal comes along, do it now and leave some cash behind), refinance for 75% of appraised value - which, if you have done it right, is more than your cash - get your cash out, leave the increased equity as your new cash and have a fixed note, repeat. I do houses in low cost level, less than $60k, and when I'm done the increased value of the house is more than my cash in the house.