Help! How to Refi Fix & Flip?

[Tyler Lee]

Hi everyone, I've been fixing and flipping houses for 3 years, but I've been hearing about the BRRRR strategy recently.

I have an incredible property in a booming neighborhood on the edge of uptown Charlotte, NC that's transitioning quickly. I would like to hold it because the sales prices are skyrocketing, but I don't want to tie up capital to limit me from other opportunities if I go the buy and hold route. Here's the scenario: I paid $170k, spent $85k in renos, and have approximately $20k in holding costs, fees, etc. The ARV is currently $350k, but continues to rise 15% - 20%+ per year. I can currently rent it for $1,800 / month or probably double that on an app like AirBNB.

How does the BRRRR strategy work on this scenario? Will a lender take a percentage of the ARV on the refi and I would not have to put capital down, or do they take a percentage of the current money I have into it for "skin in the game?"

Thanks for any advice you can offer!