The Refi step in the BRRRR

[Clara Levy]

Some clarification please on the Refi step:

Assumptions:

400K purchase price house

80k down (20%, conventional loan)

40k Rehab

465k Reappraised ARV

Ok, so the Refi:

70% LTV

So is this correct?:

465*70%: 325k so in the cash out refi I can get 325k, ***did I turn my 120k (80 down + 40k rehab) into 325k?***

I know im missing closing cost in the first purchase but i know i can roll the second ones into the refi, and not talking about cash flow, just wanna know if im getting the Refi part right from BRRRR. Thanks!!!