How would you finance the BRRR
I am currently in the process of closing on my first BRRR and trying to figure out the best way to go about it. Here are the details
Buy at $179,000
Rehab budget $20k (basically floors, painting and some minor things)
Estimated Refinance value: $260,000
Gross Rent: 27,600
Options
1) Buy the home with a conventional loan. Keep the home as is and don't refinance. Cash Outlay would be about $65,000, Cash on Cash return 32%, Cashflow $11,500 a year
2) Hard Money loan to cover the repairs then refinance out at $260,000. Cash Outlay would be about $20,000, Cash on Cash Return 37%, Cashflow $7,500 a year
3) Is there a better way I have not thought of?
All calculations were based on a 10% vacany rate, 20% Repairs and Cap X, 5.25% interest rate, No property management