BRRRR - Buy, Rehab, Rent, Refinance, Repeat

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Michael B.
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I got a building with ton of equity worth around 5million.

Michael B.
Posted Jun 13 2022, 17:58

In this market i don't know what kind of loan or line of credit i should go with. Lenders are giving me 3 million LTV.

Should i do a line a credit buy a building cash and refi and repeat?

Should do 30 year Amortization and lock in the Rates?

I need some big investor help here.

Hialeah, Florida

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Andrew Postell#1 BRRRR - Buy, Rehab, Rent, Refinance, Repeat Contributor
  • Lender
  • Fort Worth, TX
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Andrew Postell#1 BRRRR - Buy, Rehab, Rent, Refinance, Repeat Contributor
  • Lender
  • Fort Worth, TX
Replied Jun 13 2022, 20:14

@Michael B. this is the BRRRR forum for people who have questions about that method. Maybe try the commercial forum? Or maybe the Goals and Business Plan forum? I think you'll get more responses there.

Lender Texas (#392627)

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H. Jack Miller
  • Lender
  • Delray Beach, FL
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H. Jack Miller
  • Lender
  • Delray Beach, FL
Replied Jun 14 2022, 07:30

It really all depends on what your goals are as well as your time line on the financing. 

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Andrew Hogan
  • Specialist
  • Indianapolis, IN
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Andrew Hogan
  • Specialist
  • Indianapolis, IN
Replied Jun 14 2022, 19:38

Another strategy I see a lot of investors use is the old 'arbitrage play': borrow at one rate and get a fixed income from another. (borrow in 3's, 4's, or 5's, and clip a 10% every month)

It's not a 20-30% returns by any means but is often the much safer route when you've got a loan to pay off.

Good luck @Michael B. 

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Michael B.
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Michael B.
Replied Jun 20 2022, 13:31
Quote from @Andrew Hogan:

Another strategy I see a lot of investors use is the old 'arbitrage play': borrow at one rate and get a fixed income from another. (borrow in 3's, 4's, or 5's, and clip a 10% every month)

It's not a 20-30% returns by any means but is often the much safer route when you've got a loan to pay off.

Good luck @Michael Benitez 

YEA thats probably what ill do. B or C class property to cause now days the fixer uper have the same cap of a brand new building no room to play.