How would you finance the BRRR

[Jason Regan]

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