Refinance and BRRR Strategy

[Ovais Zuberi]

I'm looking at buying a property. $130,000 2bed 2bath condo. Expecting rehab cost to be about $25-$30K. ARV should be around $200K. How long after I rehab the place can I refinance and get a new loan? I'm thinking of doing the rehab, renting the unit out, refinancing and pulling my investment out. IS this possible? Thanks

[Brent Coombs]

@Ovais Zuberi, can you also give us the realistic rental return per month? Once you include HOA costs, condos often/usually don't show a positive cash flow, once fully leveraged.

Have you already found a Lender who will loan you 80% ARV for an investment condo?

Around BP, the usual thought is to only be into it for 70% of its value, not 80%!

Can you see that the margin is very tight? Things do go wrong with Rehab estimates!

And ARV estimates. And Rent estimates. And expenses estimates. And Interest Rate...

But other than those things, you could be good to go?...