How are you sizing the refinance before buying a BRRRR?
When I'm looking at a BRRRR, I'm trying to work backward from the refinance rather than just focusing on the purchase and rehab numbers.
I’d look at the expected after-repair value, projected rent, total project cost, and the loan amount I’d need after the refinance.
The part I’m curious about is how everyone handles the valuation going into the deal. Do you base your numbers on recent comparable sales, an estimated appraisal, or a more conservative value that gives you some room?
For those doing BRRRRs regularly, what numbers do you want to have figured out before you’re comfortable moving forward?