BRRRR - Buy, Rehab, Rent, Refinance, Repeat
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Updated over 4 years ago,
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Hard Money or Multi Investors (BRRRR)
We've been running numbers and wanted to turn to the BP Forum for guidance & feedback on anything we maybe missing.
We are currently doing a BRRRR with multi cash investors cash in = equity out. We used all of our own cash, no hard money. We personally put in 45k into this deal and we'll have roughly 26% equity of rental split & profits when we sell years down the line. 26% of 150k profit (in 10 years) = 39k profit
If we had used Hard Money: Roughly $7,500 in interest (8.55%) & $7,500 in points (4% origination) = $15,000 due to the hard money lender but we own 100% of the equity of the rental & long term profits. 150k profit (in 10 years) - 15k in fees, 135k.
Are we missing something on the benefit of splitting equity as opposed to going Hard Money?
Thanks BP Fam!