Need someone to explain the refinance part of the BRRRR

[Bill DeLuca]

I cant grasp the refinance and cash out portion of this strategy. I need someone I can call, I cant comprehend it any other way.

Home under contract to purchase for $110,000

Put down 20% ($22,000)

Get a loan for $88,000 to cover the full purchase price.

Then put in another $15,000 of improvements to get it “rent ready”.

• Sales Price: $110,000
• Down Payment: $22,000
• Loan Amount: $88,000
• Closing Costs: $3,000
• Carrying Costs: $1,300
• Rehab Cost: $15,000
• Potential After Repair Value (ARV): $150,000

Property appraises at $150k now what?