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Updated almost 8 years ago on . Most recent reply

User Stats

46
Posts
6
Votes
Nicholas Kitchen
  • Rental Property Investor
  • Boynton Beach, FL
6
Votes |
46
Posts

BRRRR Method Question

Nicholas Kitchen
  • Rental Property Investor
  • Boynton Beach, FL
Posted

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!

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