BRRRR Strategy Clarification/Questions

[Jalaj Punn]

I have a few questions about the BRRRR strategy.

Ex. Bob buys his home for 300k, down payment of 60k, and loan for 240k. He rehabs his place for 20k. The total investment is 80k (down payment + rehab). Bob refinances the property for an appraised value of 700k. The bank will allow him to take a loan up to 75% of the appraised value (0.75 * 700k = 525k).

He takes 525k loan and pays original loan back (525 - 240k) leaving him excess 285k. Now I have a few questions :

1. 1. If Bob originally bought his home as a primary residence, does he need to buy another primary residence and be forced to rent his original home or could he possibly use it as a 2nd home without needing to move from his place? (I know the point of BRRRR is to rent and get passive income)
2. 2. How synchronized does this process need be with finding another property? Like if Bob commits to the refinancing at the appraised amount, takes a loan of 75% of appraised value, pay off original loan, and realize he has excess capital - is there any time frame within that he needs to use the capital?
3. 3. How is that money used for the 2nd home down payment?

Please let me know if I’m missing something.

Thanks!