BRRRR Method With Cash

[Nicholas Munford]

So I've been doing research on BRRRR and most of the people that do it take out 2 loans (to buy and then to refinance). And I was wondering if using cash to buy and then doing the cash out refinance and then taking out a loan would be a better return and easier in the long run, then using debt the entire time?

Let me know what you think!

[Steve Vaughan]

Originally posted by @Nicholas Munford:

So I've been doing research on BRRRR and most of the people that do it take out 2 loans (to buy and then to refinance). And I was wondering if using cash to buy and then doing the cash out refinance and then taking out a loan would be a better return and easier in the long run, then using debt the entire time?

Let me know what you think!

Definitely, Nicholas. Use cash at the buy if available to you. Save the extra finance costs and pain. There won't be an appraisal, so be sure of your value.

My last one only had closing costs of $417.  I had to get insurance ($500) of course, but I was amazed. Whenever I finance conventionally it costs at least $2800 net extra.  Why do it twice, right?