BRRRR - Buy, Rehab, Rent, Refinance, Repeat
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Updated almost 5 years ago on . Most recent reply
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Questions about Brrrr -Refinancing & possibility of live in brrrr
Hi, I finished my first run of the brrrr book and I could use some clarity on some parts of the strategy.
1. What does the refinance portion look like of the brrrr strategy?
- Do you now need a down payment because you are now taking a loan out against your property? Or is the fact that you are leaving 25% in the property (assuming ltv is 75%) like a "down payment"
2. When you refinance a loan, will it typically be refinanced as a "conventional loan"? Or is pulling out the equity from your property and paying down the mortgage a different type of loan?
3. I'm currently living in an apartment what my wife (in California). Does the brrrr strategy work if I live in my first brrrr property and then refinance/repeat and rent out my second brrrr property?
4. I'm also considering long-distance investing just because the cost of Cali (and the county I live in) is high. I know there are pros and cons to long-distance and a lot of it has to do with risk tolerance/research. I'm wondering if long-distance investing is a better option for someone in my position. I would love any insights and opinions on this matter.
Thanks for reading this possibly confusing post. I'm just trying to learn and grow!
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- Lender
- Fort Worth, TX
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@Daniel Ahn oh yes! I actually do have a list of questions I would recommend to ask any lender that you are interviewing:
Questions for Lenders
- When do you start using rental income to help me qualify? (the answer needs to be immediately)
- When do you start using “After Repair Value” on my property?
- How long do you need me to be on title to refinance? (this is important if you do need a short term loan to purchase then refinance out - and the answer should be 1 day...very important that it is 1 day on title is all that is needed to refinance)
- What is my minimum down payment required? (if they only require 15% down on a single family home that is usually a good sign that you are working with a flexible lender)
- How many loans can I have with you?
- Can I change title to my LLC?
- Do you sell your mortgages?
- What is your loan minimum?
- Can you explain to me what your reserve requirements are?
Thanks!