BRRR Method Explaination

[John Welz]

Hey All

Been listening to some of the podcasts on Bigger Pockets and been really looking into the BRRR method but I have to say the whole process/concept still confuses me a bit.

I currently have a deal going in the renovation process. Details below 

Purchase price: $155,000 (listed at $169,000)

Renovation cost: $8,000

Renovation to be complete in roughly 3 months 

Loan was for 30 years at 4% interest with 5% down  

Plan to rent at conservative rate of $1,600/month with my market here in Danvers, MA

I guess when it gets to the refinance part and potentially recouping money invested out of pocket is where I get lost. I estimate the property when finished will be valued at $180,000 to $190,000.

Any help/Explaination would be appreciated, also if you happen to be local I would love to meet up and talk numbers with someone experienced in this method of investment. 

Thanks 

John