Can you do a half brrrr?

[Kathleen McCabe]

Hi BP fam!

I’m a new investor, and I’m wondering if it’s possible / worth it to do a “half” brrrr. Im David Greene’s book, he is pretty insistent on saving enough money to do your first brrrr in all cash in order refi and get your nest egg back. I have about 40k saved, which is not enough to do a full brrrr in my area (Dallas). What if I did the following: traditional financing for my down payment , so 25k down on a 100k home that just needs cosmetic fixes (smaller rehab) for 15 grand.... and I boost the property value maybe to $125. Can I refi the money I put into it out of it (40k)?

Again, this is just a simplified example, of course. I’m trying to get into the game quickly, but should I wait to do a brrrr when I have all the cash?

Yes, I’m open to using hard money, just a bit nervous because I’ve never done full rehab before, figured this could be the more conservative option on a first investment.

Looking forward to hearing your replies! Thanks in advance.

-Katie