Question about the BRRRR strategy

[Mary Doherty]

Question about the BRRRR Stratagy

So I ended up buying the rental property investment book by brandon turner. This was because i am intersted in getting into rentals at some point. I'm in the research phase and I'm trying to get more information on the brrrr strategy. When I got to that section I felt like I fell into that situation. Currently I bought my home back in 2012 when the market was really low. I paid 120k for it. I'm down to about 98,000 on my loan. The house I purchase was a foreclosure home, it was built in the 70s it's a four bedroom two bathroom home with about 1900 square feet. And I was able to get VA financing since I was a veteran with 0 money down. The bank remodel most of the house put in new windows a new roof and refurbish all the original hardwood floors. I renovated the kitchen and the rest of the house doesn't really need much work except for one of the bathrooms need to be remodeled which I got an estimate of about 2500 to $3,000.

Anyway I don't have an actual appraisal but with the houses going around my neighborhood right now they're selling for about 170-200k.

So if I'm understanding this correctly and a hypothetical scenario if I can get my house to appraise for $175000×.70 arv=122,500. So my existing loan for 98,000 would be paid off and I would refinance for a new loan of 175000 if that includes closing costs and any kind of fees.

So my question is could I take that 122500 put that money towards the new loan of 175000-122500. Then the remaining mortgage balance on the new loan would be 52500. Hypothetically? The house wouldn't be completely paid off but the loan amount would be reduced.