BRRRR Method Time Line

[Preston Dean]

How long do I have to wait to begin the refinance portion of the BRRRR method?

EXAMPLE:

Duplex is $390,000 purchase price ARV is $475K. Can I turn around immediately after cash purchase and have it appraised the next day and pull out 75-80% of ARV?

[Robin Simon]

Quote from @Preston Dean:

How long do I have to wait to begin the refinance portion of the BRRRR method?

EXAMPLE:

Duplex is $390,000 purchase price ARV is $475K. Can I turn around immediately after cash purchase and have it appraised the next day and pull out 75-80% of ARV?

 Most lenders will require at the very least a 3 month seasoning period before using the appraised value.  In your scenario, the lender will in all likelihood use the lower of the two values (purchase price) - it could very well be a "great deal" but lender needs to stay conservative and not fall for a false inflated value done by an appraiser

PS - this article has a lot of info on your questions!

https://www.biggerpockets.com/blog/brrrr-loans-what-are-the-...