BRRRR: Does a cash-out refinance increase the mortgage payment?
Hi, I'm new to real estate investing and I'm really enjoying the BP community!
The BRRRR method seems like a great choice for our goals, but even after watching the BP video on cash-out refinancing I'm confused about one thing:
Doesn't the cash-out refi increase the mortgage payment, which would decrease your cashflow?
I'm reading a lot about focusing on cashflow in Brandon's book, this blog, etc. and a lot of properties seem to only have $200/month or so in positive cashflow, so it seems like cashing out 80% of your equity could easily raise the mortgage payment to the point of eliminating the cashflow.
Am I missing something? Thanks!