BRRRR - Buy, Rehab, Rent, Refinance, Repeat
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Updated about 1 year ago,
Take the equity and less cash flow or
I purchased my first BRRR in November for 80k. I've invested 70k turning it into a duplex. The top is already rented for $2000 and the bottom will be rented for around $1500 when it's completed in a couple of days.
The comps are around $250k+. 80% of 250k is 200k. So i could pocket around 50k and the mortgage would be $1800.
Or i could just take out enough to cover the mortgage which puts the payments at $1400 and I could take out a line of credit, which would increase as a buy new properties and add them to the LOC. This could create a compounding effect.