How much to Refi out of a BRRRR

[Thomas McNally]

I've been running the numbers on my first BRRRR and am wondering how much equity everyone is pulling out on their Refi. Purchase price is $189k, estimated 40k in rehab with ARV conservatively at $330k.
How much equity, and why, would you pull out? Thanks in advance.

[Evan Polaski]

@Thomas McNally, generally speaking most people are trying to pull as much equity out as they can through a refi, but with the caveat that the property still needs to cash flow after the refi.  Typically, first mortgage will be your lowest cost of capital, and therefore maxing it out makes the most financial sense. 

That being said, it only makes sense to pull out equity if you have an opportunity to reinvest that capital. Pulling equity out without the opportunity to redeploy just means you are decreasing your monthly cash flow for no real reason. Hence the last R in BRRRR.