Flip/BRRRR Carrying Costs Strategy

[Kevin Reinell]

I have a partner that I am taking down a STR with and we are planning to use hard money to fund purchase + rehab, exit out through a refinance most likely. My question is how do flippers or others experienced with BRRRR handle the heavy interest + carrying costs during the time of rehab? Is that expected to all come out of our cash reserves? Or are there other strategies for handling the hefty monthly carrying costs (interest, taxes, utilities etc.)

Curious to see how others handle this.

Thanks!