OK OK, I know that if you live in the property it technically wouldn't be a traditional BRRRR in the way that we know It. It'd be more of a:
Reside (in it)
I watched a YouTube video of someone who explained that he did this using FHA and 203k loans. He fixed up a house at $350 all in, had it reappraised for $550, and was able to refi at 80%. In the end he made out with $100k after only putting in $10.5k, and lived in the home with his GF.
Has anyone else ever done this? Obviously things had to go right for this guy (the market worked in his favor), but even if it didn't, if you work it right (the FHA and 203k loans at clutch), you could end up in a very nice place for very little down and no PMI. Thoughts?
@Jason Polykoff I have done this multiple times with a VA loan. All cosmetic of course so it can pass appraisal when I bought it the first place. Upgraded it. Cashed out an additional $30k @ 80% LTV
@Jason Polykoff Yep! It's called a live in flip. If you can put a tenant in with you while you are flipping it, even better!
@Whitney Hutten Thanks Whitney! I’m not sure an extra tenant will be able to put up with my wife and two little boys! I wouldn’t put that craziness on anyone.
Is the cash out refi part of the “flip and live” strategy?
@Jason Polykoff *live in flip
@Mark Albini Thanks Mark! I just sent you a direct message.
@Jason Polykoff You could cashout refi, fulfill your residency requirement with the loan, then move out and place a tenant. That would be the BRRRR part.