Brrrr strategy explained

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I planning to do my first BRRR strategy around next spring, but I wanted to make a few things clear first. I understand the basics up until after the refinance. Once we’re able to cash out after the new appraised amount was given, does our new 30 year (or however many year your loan is for) mortgage start from scratch? Ex. Buy for $50,000 Put down $10,000 Rehab $15,000 New value $90,000 Total invested $25,000 Cash out at 80% of value to have $72,000 in cash New loan ? I hope I’ve made sense of that. If I am missing something please correct me.

Yes, in the example numbers you provided once you refinanced the house you would have a brand new mortgage in the amount of $72,000.  So, with the $72,000 you received from refinancing you would have a profit of $47,000 after taking into account the $10,000 you put down on the first house and the $15,000 in rehab.  Plus, of course, you would have incurred some holding costs and other fees in the process.  But, at this point, you would have a fully rehabbed (and rented out) house and the cash to invest into another one and do it all again.