Using Hard Money for a BRRRR

[Jared Sandler]

This is just a quick example of how to use hard money in a BRRRR. If you have any questions, post them here and tag me.

Quick Example:

Purchase: $125k

Repairs: $20k

ARV: $200k

Points: 3

Interest: 13%

Fees: $1,030

Total Cash to Close: $5,380

Monthly Interest only Pmts: $1,585

Total Financing Costs (3 months): $5,380+$1,585+$1,585+$1,585=$10,135

Cashout Refi at 75% of ARV = $150k

$145k (Borrowed Amt) + $10,135 (Points + 3 months Interest) +$2,100 (Est Title Closing Costs) + $2,900 (Est Utilities + Prop Tax) = $160,135 Total Investment - $150k Cashout Refi = $10,135 Total Cash Invested in Property

If you are use the Buy Rehab Rent Refi Repeat method that is promoted on this site you can buy rental properties for just $10,135 for a property worth $200k (or roughly 5% down with no PMI). This is how I bought my two duplexes and my Airbnb.

If you have any questions, please let me know.