Brrrr strategy explained
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.