BRRRR Method Financing??

[Seth Robertson]

Hi BP, 

I recently watched another one of the BP webinars hosted by Brandon Turner. I'm a little confused on how the BRRRR uses "short term" and "long term" money

My understanding is that you can use short term money from lines of credit, a hard money lender, etc... to initially purchase the home and cost of repairs. The next step is to rent the home out and refinance the home with a bank or profile lender for a fixed  mortgage. 

My question is: If these short term funds are supposed to be paid off in 12 - 18 months, how do you pay back the high interest short term money within the 18 months after refinancing? Should the rental income alone pay off the debts within this time frame? or is there something i'm missing?

Thanks,