100% Full Cash Back BRRR with Delayed Funding

[Sam Mathew]

BRRRR with Delayed Financing definitely works, yes, but all deals done with $0.00 out of pocket after you refi??? Is this realistic (full cash back) most of the time for other Bigger Pockets members? Meaning true 100% Full Cash Back (Purchase + Rehab costs)

I have built up my rental portfolio using BRRR and Delayed Financing, immediate refi within a month to capture 70% back of Appraised Value (this is the max on delayed funding refi cash out, unless you want to season your property for 75% of Appraised Value).

About 30% of my BRRR deals, I have gotten 100% of my fully invested and rehab funds back (as I pay the rehab costs at closing table so it counts for refi cash out), but the other times I am usually out of pocket $6k-$12k after my delayed financing refi cash out.  This is still really good and still within 1.5 years make my full cash back.

Just curious if others have found the same issue, that you don't fully get 100% of your investment back but end up a little short of your full investment.

Again, this is only for cases that you use BRRR strategy with Rehab Costs included.  Let me know...thanks.

[Jack Mawer]

You are correct - with 75% max leverage it can be difficult to get your full investment back - it really depends on the deal logistics and how much value you truly added to the subject property. I would say that being out $6-12k is not bad at all and it allows you to have some skin in the game and it sounds like your property has good cash flow.