Closing costs and BRRR

[Todd Willhoite]

I have a property I bought a year ago for $50,000, rehabed $15,000, now worth $100,000, current loan balance about $50,000. In theory I can refinance and pull $75,000 out doing BRRR strategy. Applied for conventional loan and closing costs are going to be $4,400. Clearing a little more than $150 a month after all expenses including cap ex, etc. It looks like due to the closing costs it will take away 29 months of profit (4,400/150). Does the brrr strategy just consider this a cost of business? Is there a way to get the closing costs down (I suppose I should shop other lenders) Maybe I should look at it as spending $4,400 to get $25,000 but I still have to pay back $25,000. Any thoughts on improving this and keeping refinance costs down for either this house or the next one I do?

[Katarina Cordero]

Probably an old thread but I had a question. If we buy a rental property using bank financing and spend $4000 in closing costs, would the refi of the same property cost another $4000 when doing the BRRR strategy?

Thanks.