Updated over 5 years ago on . Most recent reply
BRRRR options after you refinance
Hello BP,
Relatively new to real estate investing and looking to start off with a BRRRR. Still learning about the process, and was wondering after you refinance your house, what are your options with your loan down the road? For example, if in five years you no longer wanted the property, what options are you facing?
TIA!
Most Popular Reply
@Marc Cervantes, here's an example. To make it easy let's say you have $75k and we'll put aside closing, holding, and selling costs.
- Property #1: Purchase for $50k, $25k reno ($75k all-in); ARV is $100k. You refi at 75% getting back your $75k, plus you have $25k equity
- With your $75k you purchase,
- Property #2: Purchase for $50k, $25k reno ($75k all-in); ARV is $100k. Your refi at 75% getting back your $75k, plus you have $25k equity
- You have $75k ready for your next deal and decide to,
- Sell Property #1 for $100k. After paying back the $75k mortgage you have $25k profit from the deal. This in no way impacts Property #2.