BRRRR - Refi Hurdles

[Jennifer Katherine De Loughy]

Hey, everyone. I am hoping to get started in BRRRR this year. While I know what the acronym stands for and enough about hard money, I don't understand the refinancing area.

We have a mortgage specialist in my brokerage (NJ) who explained to me that purchasing a rental property requires 25% down and that it's "very difficult to qualify" since they only count 75% of rental income. She went on to say that you have to have a lot of reserves and that it gets harder and harder to do with every deal since you will have increasingly negative income every time. I have no idea what she's talking about.

So how do people refinance if this is the case? How do you even get started in BRRRR and get around this road block?

Looking for any and all advice! Thanks in advance!