Seeking BRRRR + HouseHack Advice

[Patrick Gill]

Brand new to this so bare with me...Looking at a duplex, which would be my primary residence, that needs a lot of work. Thinking I can definitely get it for 230k. Estimating about 30k in rehab cost, and hoping it will appraise between 290k-310k after all said and done. 

I know many investors use hard money lenders for their rehab costs, but I plan to take out a $30,000 line of credit with my local bank. I'm having a tough time wrapping my head around paying my local bank back with the cash-out refi...correct me if I'm wrong here but, step by step, the way I understand it is this:

Purchase Price 230k

Rehab 30k (paid for w/ local bank credit line)

ARV 300k

Refi after 1 year looks like: ARV-Value owed on initial loan= EQUITY?

Take out 30k of equity to pay back line of credit?

Use remaining equity to possibly fund next deal?

Is this accurate? I get a bit discombobulated once the refi process begins

[J Zev J.]

@Patrick Gill

260K all-in

11,500 cash

248,500 original loans

ARV = 300K

Refi out 240K

Pay off 240K in original loans

You'll be left with no cash and 8,500 in original loans and 240K in new loan so total of 248.5K in loans

This doesn't take into account any closing costs, loan costs, interest, etc (and possibly and probably unexpected other fees and overages that you might not be expecting...) - let me know if this helps with a vote.