Trying to figure out how to BRRR

[Jacob Ham]

I am currently working on purchasing a 3/1 Townhouse at a large discount with a investment loan with a 15 year fix. I plan on fixing it up and rent it out, then Refinance for a 30 year fix and of course enough to purchase another property to conduct the BRRR. How does the process work of Refinancing work? I understand you need a appraisal at some point, and the lender can usually give 60-80% of that value, but how does it work though. Do i just go to a lender after the appraisal and reno and say I want to Refinance this place? Also what if i bought it with just cash? Can I still Refi?

Key words- noobie - refinance - BRRR - Appraisal - buy and hold - Rental -

[Jennifer Beadles]

@Jacob Ham When you purchase the property (either with cash or a loan) and then you add value via a remodel and you want to do BRRR, you apply for a rate and term refinance and the appraiser will use the new appraised value and the lender will loan up to 75% of the new appraised value and pay off any existing loans. You would be doing a cash out refinance if you paid cash, and some lenders may require that you own the property for 6 months before they do the cash out refi.