Starting out in Real estate using a the BRRRR method

[Luke Spooner]

Hi all, 

I'm just looking for a bit of insight and more of a precise breakdown of the refinancing section of the BRRRR method.

As I think I have a way of using private money lenders, to loan me the deposit to buy an owner occupied duplex, on pretty favourable terms but I'm unsure how to structure the rest of the financing and I'm just looking for some clarity.

I believe I can borrow around 20% of the total to get a solid deposit down and then my question is, do I then go to the bank on top of that for loan for the mortgage?

Then later on down the line (1 year I believe is the time required for a owner occupied loan to refinance) once the property is Renovated and Rented out, I then refinance and pull some of the equity out of the house's new ARV and pay off my private money lenders?

Having then paid them off, I'm left with the Bank's mortgage and hopefully some cash left over to Repeat.

Is this the proper use of this method, in its basic form?

Any comments are welcome, 

I feel like it's a pretty school boy question but there you go.

Cheers! 

Luke