Using Hard Money for a BRRRR
This is just a quick example of how to use hard money in a BRRRR. If you have any questions, post them here and tag me.
Quick Example:
Purchase: $125k
Repairs: $20k
ARV: $200k
Points: 3
Interest: 13%
Fees: $1,030
Total Cash to Close: $5,380
Monthly Interest only Pmts: $1,585
Total Financing Costs (3 months): $5,380+$1,585+$1,585+$1,585=$10,135
Cashout Refi at 75% of ARV = $150k
$145k (Borrowed Amt) + $10,135 (Points + 3 months Interest) +$2,100 (Est Title Closing Costs) + $2,900 (Est Utilities + Prop Tax) = $160,135 Total Investment - $150k Cashout Refi = $10,135 Total Cash Invested in Property
If you are use the Buy Rehab Rent Refi Repeat method that is promoted on this site you can buy rental properties for just $10,135 for a property worth $200k (or roughly 5% down with no PMI). This is how I bought my two duplexes and my Airbnb.
If you have any questions, please let me know.