First time BRRRR need advice

[Lami Dantata]

Hi everyone,

I need advice on purchasing an off market pre foreclosure 4/2 with an efficiency in the back in Miami, Florida, am using a hard money lender. This is my first time doing the brrrr method but i own a triplex. The property has good cash flow potential. The seller owes the bank 240K, my contractor estimated 20K for rehab, ARV is about 355 - 360K my question is do I need to put 25% down when refinancing? I intend on keeping the property and renting it out after refinancing.

[Lami Dantata]

Originally posted by @Will Barnard:

Your refi lender will typically require you to have 20% of equity in the deal and anything beyond that, you can likely pull via cash out refi. All lenders are not created equal so shop around to see who can offer you what. Most will also have seasoning requirements meaning you will need to have a specific time frame laps before they will give you a cash out refi, typically that can be 6-12 months.

 Thanks for your response.