How to BRRRR under 100K in value?

[Joe S.]

How does someone BRRRR properties that are under 100 K in value? The lenders I have talked to want the property to appraise for at least 100 K for the 30 year refinance loan. I know in many areas 100 K property as a joke, but there are still plenty of areas out there were properties will rent very well and the after repair value is less than 100 K.

[Susan Maneck]

In Mississippi you can usually get financing for anything over 50K. Since before this year I was able to find 3/2 houses with two-car garages for 35K the way I did BRRRR was first pay cash for house. After a year I would get a first place HELOC from Wells Fargo (most banks won't give HELOCs to rental properties) and then use that money to buy my next house. I bought my first investment property in 2011 and just bought my 11th property.