Does it make sense to do BRRRR for a primary residence?

[Jake Song]

I'm thinking of buying a primary residential home for $600k, and rehab for $30k. The market value for the $600k home I am currently looking at is around $630k. Someone please walk me the process how refi would work. I am thinking of doing conventional loan with 5.5 percent downpayment to initially buy the property, then put down another $30k for rehab.

[Andrew Postell]

@Jake Song hmmm, so I'm going to tackle this from a different point of view if you don't mind.

Usually when someone purchases a primary home they have TONS of options.  Most of them a VERY low down payment options.  Even on the scenario you described above, there are renovation loans that will only need 5% down...meaning, 5% of your purchase price and rehab cost.  So if you wanted to buy a primary home, you have lots of different choices with very little out of pocket.

When we buy an invesment property - well, now I need 15% down...or even 25% down. That's a HUGE difference. And that's why the BRRRR method exists! The BRRRR method allows us to buy a home and through the steps, get our money back and leave a smaller amount in the property than 15%-25%.

So you might be able to do what you are looking to accomplish even simpler than using the BRRRR method by just using a normal loan at your disposal.

I hope all of this makes sense how I am describing it.  Feel free to ask anything additional if you need. Thanks!