BRRRR Question Refi part

[Robin Morales]

What is up BP!?

Hope y’all are well and healthy.

I am looking to purchase my first property. I think I might have found a good opportunity but I have a question. Am I able to do the use the BRRRR strategy if I use FHA to acquire the property ?

[Robin Morales]

Very Helpful thank you so much!!

Originally posted by @Matthew Porcaro:

@Robin Morales

I essentially did a BRRRR on my first property, by doing a live in flip with an FHA 203k rehab loan.

I bought the property for $270k, and the rehab cost was $80k, which was wrapped into the mortgage. So my all in cost was around $350k.

When the work was finished the house reappraised for $480k, which gave me $150k of equity to play with.

I personally took out a HELOC, but you could also cash out refinance to pull the equity out that was as well.

Hope this helps!

Matt