Can you start buying (BRRR) rental properties by financing W/20%

[Shawn McKee]

I hear a lot of stories about investors buying properties and pulling back out their initial capital using the BRRRR method. Great idea! Is it possible to do the same thing but start out by putting 20% down with an FHA loan and then rehab, rent, refi with new ARV?

[Todd Willhoite]

@Shawn McKee I used portfolio loans on those, so I ended up paying twice the closing costs for the loans (the initial loan, and the 30 year loan).  I am doing it a little different on two more.  I put a heloc on my primary residence and bought two rental properties with cash taken out of the heloc.  I will wait six months and then apply for 30 year loans on the two properties that I bought.  With the proceeds from the loans I will pay off the heloc and be able to repeat the process again.