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BRRRR - Buy, Rehab, Rent, Refinance, Repeat
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Updated about 1 year ago on . Most recent reply

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Aaron Freeman
16
Votes |
21
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Buy + Rehab Financing

Aaron Freeman
Posted

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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2,615
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Scott E.
  • Contractor
  • Scottsdale, AZ
2,993
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2,615
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Scott E.
  • Contractor
  • Scottsdale, AZ
Replied

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.

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