USING THE BRRRR STRATEGY

[Erika Caba]

Hello! So I have some questions, I'm trying to figure out the BRRRR Strategy. How do you come up with the equity/cash out at the end of the last step? Is there an equation to solve it, to find the answer? There is a house that cost $70k repairs will cost $30k, and according to the realtor I will make $30500 equity at the end. How did he come with that number?

The ARV is $140k

My understanding is that you can do a 75-80% cash our refi of the value after 6 months seasoning.

But I thought the lender can only give you 75-80% of the value of the house which means I will only get $105,000, not the $140k so at the end I will have $5k equity, not $30,500. 
I’m very confused with this. Can someone help me clear things up? It will be very much appreciated.