Types of loans when using BRRR strategy

[Christopher Ruzicka]

I'm assuming a conventional loan is used when first obtaining the property then once you rehab and rent it out what type of loan is used for refinance? So there's essentially two loans taken out for one property?

[Erica Larence-Penna]

@Christopher Ruzicka in order to acquire the property with a conventional loan it's going to need to be in livable condition and you're going to be paying lender closing costs twice (at acquisition and when you refinance). Another thing to consider is that they'll likely only lend up to 75-80% LTV.

If you're able to buy cash or use a private lender, that's ideal for acquisition.

If you're still planning to acquire the property with a conventional loan, you'd likely refinance into a conventional loan as well.  The first loan would be paid off when you refinance.