Does BRRRR actually work?

[Jay Thomas]

I am currently using hardmoney to do a flip. As #2 exit strategy, I was thinking of renting out the property and and refinance to get my cash out but this seam way more complicated.

I talked to several bank about refinancing out of my hard money. Some will only refinance based on actual cost instead of ARV. Other will only refinance as a commercial loan. These would either require me to leave my money in the deal or wipe out my cash flow. Barely anyone would do a straight 30yr conventional.

I also learn that my personal umbrella won't cover my LLC plus getting insurance under LLC becomes another drama.

I am a small time real estate investor and having a LLC just complicates my life. The only reason I have an LLC is because hardmoney lender requires me to. It looks like BRRRR only work when buying in your name/cash/conventional rather than LLC/hard money.