Refinance piece of BRRRR

[Elaina Burkhart]

Hello,

I have a couple questions regarding a refinance on a duplex my husband and I own. We purchased the duplex last year for $140k with a home equity loan (100k fixed rate) and a smaller HELOC (40k variable rate) on our primary residence. We are trying to BRRRR this (on a much slower scale at this point as we already have tenants and it cash flows about $400/mo- but thinking future plans).

So we thought we would force some appreciation on this through renovation in the future and then refinance. Since we don't have a typical conventional loan on it, can we still do this? Will banks offer us a 75% ARV cash out refinance? I feel like I'm missing a key aspect of the refinance part of it all.

We still owe $97K on the home equity loan and then have the $40K HELOC. We have the cash to do the renovation so we don't need another loan for that (the renovation would add up to around 30k). Our hope is that it would appraise for around 200K. We wanted to take the cash and pay off the HELOC then reinvest the rest. I know I have to make I get a true renovation cost nailed down and the ARV. Like I said, this is just a future goal so feeling it out right now.

I think I've got to be missing something here because my numbers seem way too good to be true. The main thing that's tripping me up is that we have an equity loan and HELOC on it currently, so idk what that does when you go to refinance something.

Thanks!!!