Real estate investing

[Brianna Johnson]

Can someone explain the Refinance part of the BRRR method? Along with house hacking tips for kitchen and bathroom?

[Charles Carillo]

@Brianna Johnson

The refinance portion of the strategy is the part where investors are able to receive back a portion (hopefully all) of their invested capital, and possibly a portion of the value they have created. 

For example; you purchase a home for $50k, invest $25k to renovate it, and then rent it out. After the seasoning period (6+ months), you speak to a lender, and hopefully, the property has increased to at least $100k, so you are able to refinance with long-term, fixed debt at a 75%-80% LTV; allowing you to pay back yourself, and any HML who lent you funds.

You now own an asset, that cashflows (hopefully), your net worth has increased by $25k and you are able to do it again.