Updated over 6 years ago on . Most recent reply
Question About brrrr
Maybe I'm just missing something, but I'm confused about a few things with the brrrr method. Say I buy a house for $100k, rehab it for $20k, and then refiance for $200k. If I did a cash out refi, I would have around $140k because they only give you about 70% of the arv correct? So I would take that 140 and pay off the $120k I put in BUT wouldn't I also have to pay the 20% down payment for the new loan? So I'm paying $20k of my money for the down payment right? Also, the new loan would make the mortgage go up so you're betting on the renter paying more than the new $200k mortgage right?
Thank You