Brrrr Refinance?
Hi everyone,
I am new to bigger pockets and recently learned about the brrrr method. I understand everything about it except the refinance part. I actually just don't think I know exactly how refinancing works...
So if I got a loan for a house that cost me $50,000 and then put in $20,000 for rehab that's $70,000 I spent right there. Let's say the house ARV is $100,000... After fixing up the house I can go refinance it for probably a better rate since its in good living condition I understand that. I don't understand how it puts money in your hand. Especially since I've heard you can get it refinanced for up to 70% of ARV. What about the other 30%? How is the only money coming out of pocket the possible closing costs that would follow?
Again sorry I'm new to this so its probably an easy concept I don't understand yet, any help would be appreciated!