BRRRR Questions help

[Lee Crews]

I am curious on the refinancing part of the BRRRR strategy. I know that it is to get the cash out of the property so that you can Repeat the process. My question though is by doing the refinance of the property value after renovations you will end up with a higher mortgage payment which cuts into your cash flow. Is the benefit of this strategy to build up your portfolio while making a little profit or breaking even?

I am new to REI. But I bought my current house as a HUD home for 75k. I have put 10k into fixing it up and me and my family have lived here for the past 5-6 years. I owe around 65k left on the house and it's value is around 125-130k. I have a low payment at the moment and I am trying to decide whether to look into doing a line of credit or doing a cash out refinance to get money to purchase a property I am looking at.

Also we are looking to purchase a new home for us to live in and use our current as a rental property as well as the property I am planning on purchasing with the refi or the line of credit.

I am in Augusta GA if anyone from BP is and is willing to meet up to talk to me in person.

Thanks,

Lee C