BRRRR - Buy, Rehab, Rent, Refinance, Repeat
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Updated about 1 year ago on . Most recent reply
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Buy + Rehab Financing
There are so many loan options out there, that I need help focusing my education to the most important ones, and that raises the first question I am having a hard time understanding.
For the experienced BRRRR investors, are there typically three loans in play or just two?
1) Loan to purchase the property
2) Loan to rehab the property
3) Refinance loan
Or are the experienced investors typically seeking to combine steps 1 and 2 into a single loan (e.g. fix-and-flip, or some alternative)?
1) Loan to purchase and rehab the property
2) Refinance loan
Most Popular Reply
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It's rare (and challenging) to fund a deal where you get a loan to purchase, a separate loan for rehab, and then refinance later.
The more common approach is your 2nd option. Take a hard money loan or a 203k loan to purchase and rehab. Then refinance into a conventional loan when you're done.