Private Money Financing BRRRR

[Ben Burds]

Hello all- new here to posting on the forum but have been following and reading up the past few months and had a quick clarification question on private money loans and refinancing with BRRRR.

I would just like to make sure I am thinking about this situation correctly.

Let's say I were to buy a duplex for $80,000 that needed $20,000 in rehab that would put the ARV around $120,000 and was able to obtain a private money loan for the $100,000 at 10% interest could I then rent out one side of the duplex, move into the other side and refinance after a 12 month seasoning period? During the seasoning period I would pay back the interst on the loan, $10,000, and after refinancing pay the private lender his full $100,000 and then move on with my 30 year fixed mortgage.

Any help would be greatly appreciated as I am not sure if I am on track with this strategy or not.