All Forum Posts by: Vlasta Georgievski

Ok, I need help understanding how BRRR works in this scenario. We recently purchased a distressed 2 br 1 bath home for 48,500.00 and rehab costs will be roughly 20k. The A.R.V is estimated to be 100,000.00 based on comps in the area. lf i cash out refinance 80K based on the A.R.V. then this property will not cash flow. I know it's considered a BRRR success to pull out more than you put in, but if pulling out results in negative cash flow how is that a good thing? What am I missing?

Thanks @Vadim F. for super fast response.

The market is in rockville maryland, Montgomery county. I haven't understood the one "rent will cover on 75LTV refi" part.

The first thing I got lost is on how much to offer for the buyer. For flippers I see ARV*0.7 - rehab cost. Is that going to be the same for the BRRR also. As I mentioned the house does need a whole lot of renovation. I am not planning flipping, I am planning to live and rent out part of the rooms.

Right now I am planning to ask 70% of the ARV of the house. And to get my renovation money, that is where I am kinda lost - like how and how long does it take?

What is d4$?