How do I BRRRR a all cash deal?

[Jacob Martinez]

It would be a dream come true to be able to BRRRR my first deal. I have a cash deal with a duplex in process 50k purchase 20k rehab. With in 20 mile I have purchased 2 other duplex's for 175k and 195k both Bank conventional loan. If I purchase this one with my own cash or use private money.

How do I BRRRR this deal???

[Alix Cassagnol]

The key is to finding the after repair value and keeping your total expenses to 70 %. After stabilizing the property with tenants you then go to the bank and refinance. At that point depending on the lender you can pull out upward of 60%to 80% of the value.

Example: you 50k duplex after putting 20k into it is worth 100k you can refinance after stabilizing it and get your 70k back to reinvest..

So if you buy with a conventional loan you are leveraging your out of pocket and the arv ( after repair value) still has to be 60%to 70% after all repairs.

The 175k and  195k properties depends on the amount of money you are spending to repair and the comparable prices in the area.