BRRRR Method For Land Contracts

[Elvija Haxhaj]

Hey! 
I'd like to know how to apply the BRRRR method on a land contract deal. The home I'm interested is in the historic district of Ypsilanti, Michigan. House is in living condition but the caveat is you can't do a new Reno. It has to be kept with the same style as many of the homes in that area. House is a 3 family fully occupied home.

I have the opportunity of getting it on a land contract deal. How can I get a refinance loan to buy another property if it’s under a land contract ?

I am in the Ann Arbor/Ypsilanti Michigan area. 

Thanks for your advice. 

[Eric Wilkinson]

If you refinance the home, you would be paying off the land contract and have the new loan.  You would not have both.  I am assuming you are doing a land contract because you are putting less than 20% down meaning you have little to no equity.    When you refinance, you will likely be able to get a loan that is 75-80% loan to value.  So either the value has to increase or you have to bring money to the table. 

From your question, it sounds like you are expecting to refinance in order to pull cash out to use on another deal.  If you are starting with no equity, how do you plan on raising the value of the house to get a refinance loan in the first place let alone pulling anymore cash out?  If you can’t rehab the property, I don’t think you can bet on appreciation raising the value that much, that quickly.