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BRRRR - Buy, Rehab, Rent, Refinance, Repeat
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Updated 11 days ago, 11/21/2024

User Stats

19
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14
Votes
Lucas Schlund
Pro Member
14
Votes |
19
Posts

How Much Cash Do I Need To Put Into My First BRRRR and How Much Should Be Financed?

Lucas Schlund
Pro Member
Posted

I have been having a very hard time getting a straight answer to this question, probably because im having a hard time wording it right, so just bear with me here.

For my first deal, I plan on BRRRR'ing out of it to build my portfolio faster. I will give some example numbers, and please let me know what you all think.

Perfect scenario example :

Buy a property for 80k, put 25k into rehab, and it appraises for 150k. After I would refinance and roll it into the next deal, like all BRRRR's work.

Lets say I find a deal and the numbers run to be exactly like the situation above. How much cash should I plan on pulling out of my own bank account for this?

What I mean by this, is should I use a lender to cover 90% of the purchase and 100% of the rehab for max leverage, or should I put more equity into it. Should I have a lender cover 90% of the purchase price and 0% of the rehab? 

You guys get the point, should I be looking to leverage other peoples money as much as possible, or use more of my own cash in the deal? 

The main reason I'm asking this, is to understand how much cash I need to save up in reserves before pulling the trigger on a deal like this?

Thank you to all that respond and your input.

  • Lucas Schlund
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