Is it a good idea and take Personal Loan and Start BRRRR?

[Rita Samaddar]

Hello everyone, Over the past many months I have gained knowledge about BRRRR through the bigger pockets podcasts, BRRRR by David Greene, and other books by Brandon. Even though I have the knowledge, I do not have any money to start

I would like to do my 1st BRRR in Houston, TX, and thinking of moving to the house (in which I will do the BRRRR) myself.

Do you guys think it is a good idea to take a personal loan and begin my Journey? I am unsure, hence asking for guidance.

Here are the hypothetical numbers of my calculations if I proceed with a personal loan. I talked to Groundfloor (Hard money lenders) and they are willing to lend 80 % of (purchase+rehab) cost

Thank you, Everyone, 

Rita

[Eliott Elias]

The BRRRR method could be a very powerful strategy. But it is flawed in that it depends so heavily on the appraisal. To be safe I feel like you would need to purchase the property at around 65% LTV to be confident the loan the bank gives you at 75% covers what you put in to it. Which brings me to my next point, it's pretty rare to come across a deal 65% all in. Might as well be a flipper without the headache of dealing with the bank. Just my 2 cents