Help! Cash out refinance question!!!
I keep hearing about the BRRRR strategy, but i dont know how effective it is with cash flow. Couldnt this strategy kill your cash flow?
Say you refinance and increase your loan amount to pull cash out. Once youve increased your loan youve also increased your monthly mortgage payments, but yet you have NOT increased rents. Wouldnt this kill ypur cashflow?? How do you do the BRRRR strategy without hurting cashflow? I never hear people talk about the negative on this...
So say i owe 100k on house but its worth 140k. If i cash out refinance and basically have new loan of 140k that would increase my mortgage correct?