You put the Refinance in BRRRR

[Micah Watson]

What puts the third R in the BRRRR strategy for you?

I am new to this, but it seems that it’s assumed everyone will use a cash-out refi to pull their money out each time.

If you were to instead open a line of credit(HELOC or other), couldn't you avoid paying closing costs twice per property by using the following order of operations?

Buy and Rehab with Line of Credit, Rent, finance(notice I did not say refinance), pay off line of credit with newly closed upon mortgage, and repeat

BRRFPR, if you will

I’m very curious to know what holes you see in this and, in general, what you think!

[Jerry Padilla]

@Micah Watson it is typically very difficult to find a lender willing to do a HELOC on an investment property. Also HELOC's have variable rates and if you are planning to take the money out long term, you risk the rates going up and can end up paying more in interest than you would in closing costs for a refinance.