All Forum Posts by: Kim Ran

@Sharon-Lee Smith

Thanks Sharon, I knew about comps but I was wondering if there were any other factors as well?

Hi! Can someone please clarify for me how do you estimate what the home will appraise for after Rehabing, so that the Refinancing part and numbers work out smoothly?

For example, if I bought a home for $100k and rehab it with $20k... How would I know how much the home will approximately appraise for? Thanks in advance!

Thank you everyone for the support and info!

I'm in the same page now; you guys are awesome!

@Jonathan W.

Thanks Jonathan for the reply!

Ok, so say I do use that cash out money to pay the original loan. I'm left with the new refi loan.

1. Does the income from the property rent pay for that refi loan?

2. Please correct my logic if wrong. Say I'm moving on to purchasing my second rental. I would need to take out an additional loan here for this property, correct? If so, I would use the amount left over from the refi cash out for the down payment and rehab. I'm assuming I would take another another loan when doing the refi step. Does the brrr leave me with a lot of loans at one point? This is the part that has me spinning.

Thanks in advance!!!

Hi,

I think I've must have gotten myself a bit confused. Okay, so when doing a BRRR, I'm sort of stuck on the refinancing and repeating part. Say I purchase a property by putting 20% down payment on a loan. I rehab it and rent it out. Now, I refinance it at 75% of my new and highly appraised home value. What happens next? With this new Refi cash out value loan, do I pay off the original loan I took out? If so, Say I pay off the original loan and I make back the money I put in the deal originally. I keep hearing now you 'repeat'. But how do I repeat in the sense that I feel like this refinance value is technically a loan, right? How would I reinvest this refi cash out money if it's a loan?aghhhh,I'm so confused on this part. Is it free money?! Please help 🙏😢😭😫