3 Questions about BRRRR

[Jack Norris]

I have a couple of questions about aspects of the BRRRR process. Apologies in advance if these are obvious, I'm still trying to fully understand it.

1. When you first buy, can conventional financing be used with the same lender that you eventually will refinance with? Or do you need to buy without financing in order for this all to work?
2. Does the refinance part require a new down payment?
3. Once you refinance, your loan balance will drastically increase. And your cash flow will decrease. I understand that the point is to pull your money out of the deal and move on to the next, but doesn't this put you that much further from owning the property free and clear?