Questions about the BRRRR

[Terry Sweeney]

So I spoke with my lender today and they informed me I had used a majority of my equity from my properties. However, I just renovated two properties in order to have them refinanced to gain more equity for more purchases. When I advised my lender of the work I had done, I was told it won’t really matter. The original appraisal (before rehab) would not change much because the house was purchased at a cheaper price lowering the property’s value? Which I didn’t really understand because I could sell the properties for a significantly higher price than what they are appraised at.

My lender told me to consider a construction loan for future purchases. But when explained, that type of loan sounded better for larger rehabs. But I only buy small single family homes. Is there a better option?

Thanks