BRRRR Investing Question

[Matthew Roberts]

I'm looking to begin investing in the San Diego. For BRRRR investing, why can't you take out a normal loan on a home and then fix it up and then refinance it? If I'm trying to buy a SFR here in San Diego, I'm going to need at least $400k in cash from myself or a private lender. That seems unlikely so couldn't I take out a loan with a 5% downpayment of $20k and then use say another $50k to fix it up. If the ARV is say $500k could I then refinance and get all my money back? Pretty new to this so I'm trying to figure out why you'd use cash.