General BRRRR Question

[Jordan M.]

Hello everyone,

I have a couple quick questions about the BRRRR strategy. First, I love the idea of this strategy, and how it can help gain properties more efficiently. My first question is when it comes to buying. Do people typically pay for the property in full up front? Or do they still use the 20-25% down payment, fix it up, then get appraised and refinance?

Second question, does refinancing kill cash flow? 

My last question would be what would some cons be to using this strategy? I’ve listened to a lot of podcast and have only read positive things about this strategy, but have not really heard any cons! 

Thank you in advance and I look forward to hearing from everyone!