Will BRRRR Strategy Work With a 203k loan?

[Austin Hughes]

Essentially, the BRRRR strategy is where you buy the home, repair, rent, refinance, and repeat the process. I'm sure you all know this.

For my source of funding for the house repairs, I am considering a 203k loan which wraps up all repair costs into the mortgage.

Let's say I get a house valued at $90K for $60K plus $10K for repairs. My 203k loan will be somewhere around $65K after down payment is subtracted.

In the BRRRR strategy, it appears people get regular loans, pay for rehab out of pocket, and then refinance to get their out of pocket costs back. Would this strategy work for a 203k loan since rehab costs are already in the loan?