BRRRR refinance down payment

[Adam Hays]

I've been studying a lot about this strategy but haven't been able to find an answer to this question: When undergoing the refinance step in the BRRRR strategy is there a 20% down payment requirement or is the equity in the house sufficient?

[Anish Patel]

@Adam Hays The BRRRR Goal in my opinion in an over simplified example

1. Buy Property at  good discount - lets say 60 K as it needs a lot of work.  Put 6K down of your cash and borrow finance rest of 54K from mom (So Far 6K cash in)

2. Fix Property, Renovate and rent (lets say 20K Cash Borrowed from Grand Dad) - Total investment 6K from you + 54K from mom and 20K from Grand Dad 

3. Refinance, property appraises for 100K, rented for 1000/ month.  Bank gives you 80 K Loan. And you have 20K in equity for your work

4. Use 80 to Pay 54K back to mom.  6K back in your pocket and 20K Back to Grand Dad

5. You now have a rental property giving you some cash flow and 20K in equity with 0 money down and you got everyone's money back to go find another house to  BRRRRRR