What's the most $ that I can pull out of a BRRRR?

[Adam Soyak]

I can't seem to find the podcast I listened to, but it discussed something along the lines of setting additional money in escrow at time of purchase to make the home purchase sales price larger than the contract amount. 

For example- 

• Home Sale: $75,000
• Cost of repairs: $25,000
• ARV $150,000

Say I want to refinance after 2-months (delayed mortgage or other).  I am being told that the maximum I can refinance is the total amount of the home sale.  Which is $75,000.  I would have left $25,000 (cost of repairs) in the home.

Can I add $25,000 to the purchase price (in escrow?) pushing the sales price $100,000, which in-turn allows me to refinance at the new purchase price of $100,000.  Thus allowing me to pull all my funds out of the deal when I refi.

Is this possible?  If so, what is this process called and any additional advice is greatly appreciated.

[Guifre Mora]

@Adam Soyak you can refinance with cash out at a 75% ARV. $112,500 - current loan (if applicable)- closing costs. If you are correct on the 150K you are very close to getting 100K back. +-.

You can add 25K to the purchase price but most lenders will ask for a purchase agreement and HUD of the original purchase to avoid this kind of borrower's fraud.

It's about the ARV based on the appraisal and if the property is stabilized. Some lenders will not lend to vacant some niche lenders allow it.