Doing the math on a BRRR, Quick Question

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I was doing the cash in/out math on the BRRR method manually to get a better idea of how it's all calculated. The last piece I don't hear much about but came to realize is in the last R, you have to schedule/plan for a second down payment and processing fees into the new mortgage for the refinance? Or is there a loan out there that lets you do all this work then refinance w/o additional costs? I appreciate the time.

You will have closing costs when you move from temp financing/cash to a mortgage on the cash-out refi. There shouldn’t be a down payment as the whole point of the Buy-Rehab is you end up with 20% equity or more when the property appraises.

In a personal example I have going now...

Bought for $71k, after closing costs
Rehab for $15-20k
Rent for $1800-$2000 (duplex)
Refinance with appraisal around $115-120k
I can cash-out at 75% or 80% (depending on rate I want) but 75% of $115k is $86,250

I have used  in one home to use as the down payment on another deal. It was one transaction with a few moving parts. Both properties had to be appraised. The bank basically uses the equity in one as collateral on the new purchase. At closing it works like no money down, even though there is a lien on the collateral property.

With the temp financing / cash you have in your example, did you end up using cash for the initial purchase? You then cashed out when you refinanced at new appraised value?  When you said Temp financing do you have an example?  I apologize if the questions sound dumb. I learn in a weird way. :)