Effects of interested rate on returns from BRRRR

[Jeff Lundeen]

When interest rates rise, your refinance rate could be worse than your original.    How do you work this into running the numbers?   Does it leave you with a lower cash flow than originally projected?  Can you maintain your same cash flow by pulling less equity out during the refi?  

[Jaysen Medhurst]

@Jeff Lundeen, since you refinance relatively soon in the BRRRR process (usually 6 months or so), a slightly higher interest rate is negligible, maybe 25 to 50 basis points. A 25 basis-point increase translates to ~$15/month per $100k borrowed. If that's a deal breaker, then you don't really have a deal.