Brrrr mortgage question after rehab and appraisal

[Priscilla C.]

Hi I have a question for those of you that have done the Brrrr method on a property.How does the mortgage look after you rehab a house you bought in cash?Like let’s say I get a house for $30,000 and it appraises for $165,000 would my new mortgage amount be based on the property that is now worth $165,000? So let’s say I get a 15 year mortgage at $1348 monthly would this be correct to anticipate for any properties I do the brrrr method on?I wouldn’t be offered a Mortgage at $401 a month because the property is valued more so I will have to pay more monthly right due to its current valued after the forced rehab?

[Priscilla C.]

Quote from @Matthew Becker:

It depends.  After you rehab it you should be able to get a loan with a 80% LVT.  So if it apprasies at $165K your loan would be for $132K.  

I am not sure where the $401 a month comes from.  Your payment will just be based on Taxes, insurance and the loan payment.  

Can you clarify?   

Ok going off of this example 

• Purchase Price: $100,000
• Rehab Costs: $50,000
• After Repair Value (ARV): $200,000
• 80% LTV: If a lender allows an 80% LTV, the investor can refinance for $160,000 (80% of $200,000).

So following this example would this mean my new mortgage is going to be based on $160,000 so let’s say for a 15 year loan I would be expecting to pay around $1,300 - $1,500 a month? I would not be paying a mortgage on the appraised value of $200,000 correct? yeah to clarify the $401 a month I just based it off a general search on a $50,000 mortgage…