Updated almost 7 years ago on . Most recent reply
Seller Finance BRRR or ...
Scenario:
Structured a seller finance deal, Terms: $10,000 down, purchase price 32,000, 3 year balloon payment, 6% interest.
I spent $21,000 in rehab, home has been appraised for $114,000. Although, I have someone who wished to purchase the home through a VA loan, I have denied her because I am more concerned with creating passive income.
My Question:
Found a renter at $875 a month. I am wondering what method can I use to pull this equity out of the home to purchase more homes through owner financing techniques. Can I use the BRRR method? If not, then what method can I use with the consideration that this is an owner finance deal.
Most Popular Reply
From what I've read, I believe that you can use the BRRRR method to obtain a mortgage 70-80% LTV and use that to pay off your seller, then use the rest to repeat this process. Just run the numbers to see what your cash-flow will be after cash out refinancing.