BRRRR analyzation concept

[Gerald Donaire]

Hey BP!

I’m getting better at analyzing deals and find it in me to push myself to understand fully why the numbers work in their respective way with each strategy. Rental property analysis being the easiest and then fix and flip analysis comes pretty easy to me as well.

I'm having trouble grasping the concept of BRRRR and why the numbers are ought to be ran a specific way. I understand that it runs as a "two-legged loan", and my first loan would usually be hard money or private money terms (70%LTV +12% Interest Only) + fixed costs. Now with the Refinance part of the analyzation, I understand the PITI is based off the ARV, does that mean I would not have to account for a down payment considering forced equity of 30%?

I would appreciate any help given, thank you I’m advanced!

Gerald Donaire