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Updated almost 8 years ago on . Most recent reply

BRRRR Method Question
Regarding the BRRRR method, let's say you acquire a property below market price. You do a little rehabbing and raise rents after the lease is up. You do a cash back refinance on the new appraised value? Pay your private lender back. My broker is suggesting this is a bad option because of two reasons:
1) Lots of money for closing costs (again) and
2) The interest rate is going to typically be higher on the new refinanced loan.
Can somebody explain to me what I am overlooking? Or are these new interest rates and closing costs just the cost of doing business?
Thanks in advance!