BRRRR Strategies and refinancing

[Brian Brown]

Hey BP nation- I understand the concept of the BRRRR strategy I believe...lol. What I'm trying to figure out is the rental price vs. the new refinance payment. If purchase a property for $60k put $40k into it you sit at $100k all in and it's worth $200k, you are able to rent it for $1100 you are good on the 1% rule and say you are cf a $100 a month. Now you Refi at 75% getting $150k, great you payoff the original $100k and have cash to get into another deal. But wait the new $150k mortgage payment is now higher than your $100k now your in the red each month correct doesn't make sense so what am I missing. Do you need to calculate what your refi should and base rent off that. Thanks in advance.