Can you really BRR in real life?

[Joanna Dennis]

I am just starting out and met with a seasoned real estate investor this morning. I explained that my investment strategy was going to be to BRR single-family homes.  He said that it was basically impossible to BRR because banks won’t appraise the houses the same as an independent appraiser would and so it’s a nice idea but not a real world practice. Banks have their own appraisers and they don’t want to do it. He referenced his experience plus the word from a bank VP he knows... Anybody else run into this “real world phenomenon“ or anyone who has done this successfully want to provide any insight on how they did it?

Thanks

[Jason D.]

Buy low, renovate correctly and efficiently, know your rental market. I just finished a BRRR that i bought for $55k, put $45k in renovations, with purchase and holding costs I'm all in at $112k. I had $22k of my own money in the property. Appraised for $163k, I refinanced at $117,650 (72%), and got $19k back at closing. $3k left of my money in the property, cash flows about $200 per month, after reserves. It can be done and there are many here that have successfully done it.