Brrr refinance question

[Michael Bridgett]

To those that brrr, are you financing the home then paying the rehabs out of pocket? Or using rehab loans?

I often hear investors evaluate the property before the Reno and refinance, however not after. After the refi (and possibly the rehab loan) your mortgage increases therefore effects the cashflow.

Would appreciate any insight on this.

Currently buying a value-add project, that needs to be completely updated. Seeing if a brrr would be possible.

[Jim Goebel]

@Michael Bridgett

I think most that get into the BRRR loop get value ad properties with cash. Most of the best deals when you have the skills to complete come from deals that can't be financed (banks don't want them, too much risk)

We buy with cash and fund the rehab with cash.

We use a HELOC as needed tied to our primary residence.

I can't speak for everyone else, obviously.