Confusion on Refinancing from the BRRR
Hi Everyone,
So I've been reading articles on the infamous BRRR strategy and the refinance portion is the area I'm having a little trouble comprehending.
Could someone please explain exactly the process of refinance? Heres my understanding of it so far, you get a conventional loan for the property, then you refinance (after the required time period) which reflects the current value of the inflated home price, then you receive a loan larger than the initial one? I guess my confusion is how exactly does it help with additional cash reserve if your receiving a brand new loan altogether?
Any answers are extremely appreciated!
Thanks!
Michael