What's the most $ that I can pull out of a BRRRR?
I can't seem to find the podcast I listened to, but it discussed something along the lines of setting additional money in escrow at time of purchase to make the home purchase sales price larger than the contract amount.
For example-
- Home Sale: $75,000
- Cost of repairs: $25,000
- ARV $150,000
Say I want to refinance after 2-months (delayed mortgage or other). I am being told that the maximum I can refinance is the total amount of the home sale. Which is $75,000. I would have left $25,000 (cost of repairs) in the home.
Can I add $25,000 to the purchase price (in escrow?) pushing the sales price $100,000, which in-turn allows me to refinance at the new purchase price of $100,000. Thus allowing me to pull all my funds out of the deal when I refi.
Is this possible? If so, what is this process called and any additional advice is greatly appreciated.