BRRR Strategy example with my situation
Hi,
I recently flipped my first home with my family and it just went on sale! I feel like I have understood many of the concepts talked about on this website except for one. That is the Buy, Rehab, Refinance, and Repeat strategy. It sounds amazing when explained but I'm having trouble envisioning it in my current first home. What I mean is, can someone with experience, use my numbers as an example to show me if it would be worth looking into for my first property? It's only been on sale a little over a week, but maybe it's better to rent it out? We did 90% of the work ourselves.
Original loan: $129,500.
Monthly Mortgage: $955
Rehab Costs: $25,000
Current Price for Sale: $240,000 (Not yet appraised, so could be a little lower maybe)
My main questions are will BRRR work in this example? How do I pull money out and keep the property as a rental? It's a normal mortgage and I had only put down 3.5%. Is it still worth and possible to do BRRR? Wouldn't my mortgage payments go up if I refinanced and took out the extra value added money at 70%?
This is all new to me so trying to to take it all in and not miss anything. Here is a link to a video tour of the property if anyone is interested:
https://www.youtube.com/watch?v=M7iN21U6AbU
Thanks!