Are you paying cash for you BRRRR properties ?

[Robert Collins]

When purchasing property with the intent to use the BRRRR method are most investors using cash to purchase the home , then refinancing after the process has been completed or are people still financing ( putting like 20% down) then rehabbing, putting a renter in it, then getting the bank or a portfolio lender to refinance ?

[Adam Wigdorski]

@Robert Collins

I buy two properties a year the exact same way. And using simple backwards math I’ve gotten all my initial investment back on each rental.

I buy the property with a 80%ltv arm 5/5

I use my heloc for the 20% down

I rehab using my heloc

I refi 3 months later to a 75%ltv 30 year fixed.

Has worked so far.