Updated over 7 years ago on . Most recent reply
BRR(R?)R - Help explain refinancing portion
Can someone explain the refinance portion of the BRRRR strategy and how it allows you to (ideally) gain back all the cash you initially put into property while still maintaining equity? Examples or personal stories with numbers appreciated!
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@Claire D. My first BRRRR went like this: purchase price plus closing costs $58k, rehab costs $24k so I was all in at $82k. Rented it, waited 6 months to season it, then refinanced. Appraisal came in at $121k, bank lent me 90k which was 75 percent of the appraised value. So, I got back my 82k plus 8k more. And I have 30k in equity. Then, repeat ......