BRRRR METHOD QUESTIONS

[Adnan Dizdarevic]

Good Day BiggerPockets,

Out of all of the methods i have looked up, the BRRRR method catches my interest the most. The method seems to make the best strategy in my opinion. However, i have some questions i was hoping i could get some answers to:

1. Cash or HRM Loan? Which would you recommend? and why?

2. If i do a cash deal to buy the property and renovate the property, would i need to wait the 6-12 months to get a home equity loan? Since i am not refinancing, i am only financing would banks still expect me to wait 6-12 months to finance? 

3. Lets say the property i am interested in purchasing is $140,000.00. I want to pay in cash. How much of a lower offer would most of you make? 20% less? or what would be a good number to offer in cash for a $140,000.00 property? Now keep in mind this property needs a full renovation approximately $40,000.00 - $50,000.00, it is a duplex in a neighborhood where most duplexes that are move in ready sell for closer to $200,000.00

[Diana Muresan]

@Adnan Dizdarevic how many properties do you own? Can you do this one as owner occupied? why would would invest yourself so much. You can do renovation loan  with FannieMae HomeStyle with only 15% down for a duplex that includes the reno, you can refi or sell after reno and you can roll in the mortgage payments during the rehab of the house is uninhabitable. You can also build 3% seller credits for closing costs. Otherwise next time keep this program in mind, it also allows investment properties, 1 unit, 15% downpayment