How would BRRRR Refinancing Numbers work in this case?

[Inam Rehman]

Hi BP, i have a deal that i am looking forward to bid on but need your help understanding the refinancing part of BRRRR deals. So lets dive into the details of property:

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ACQUISITION

Property: 3 bed 1.5 bath SFH foreclosure and being sold at $50k

Average resale value = $90k-$100k

Rehab estimate: $30-35k

Will bid on this at $20-25k max! I dont think its interesting enough over this price point.

So Acquisition cost = $25k + $35k (rehab) + $3k (closing) = $63k (will finance this with renovation loan)

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Now lets assume conservatively that ARV is $90k which brings the 70% of ARV to $63k.

My question is how do i calculate how much money i can get out of this investment after refinancing ? Let me do the math here i dont know if its accurate or not but please guide me here..

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RENOVATION-LOAN

Initial Renovation Loan = $60k @ 5% interest (assuming)

20% down payment = $12k 

Finance Amount = $60k - $12k = $48k

Cash in = $12k (down) + $3k (closing) = $15k

REFINANCE

Appraised property value = $90k

Amount owed on property = $48k

Refinanced Amount at 70% = $63k

Cash out = $63k - $48k - $4k (closing) = $11k 

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Is my cash out statement correct ? Is this how banks will refinance ?

Thank you for all your help! :)