BRRR Method - Refinance
Hello BP Members,
I have a question about the refi part of the "BRRR Method." I am having trouble understanding if I should do a residential or commercial refi. I am buying the property under an LLC. I spoke with a broker, and she stated because I am buying under an LLC that it would be a commercial loan. Is this true? I am confused, because I thought commercial loans were for big MFR projects (5+ units). I am buying a duplex in Baton Rouge. My goal is to obtain 57 units this year, so I want to position my set for the best success possible when it comes to refinancing.
Also, How should I go about calculating my numbers based of the LTV for the refi, which is my exit strategy. How do you run your numbers if you are dong the BRRR Method? I have an investor friend whose duplex on the same street appraised for $114k in 2015. Should I go off of this or the recent comps? I am buying the property using a hard money lender, but the seller is doing an owner finance option with me. Purchase price will be $15k, rehab cost $50k, closing cost fee, appraisal fee, etc.