B.R.R.R.R.

[Jacob Barnhill]

I have 2 deals that look to be great candidates for the B.R.R.R.R. (Buy, Rehab, Refinance, Rent, & Repeat) method

? Do you get an appraisal upfront and then again when you refi to see if it is 75% below LTV ?

? Can someone break down the timeline of how one of these deals typically go down?

[Brent Coombs]

@Jacob Barnhill, here's the question to ask regarding these potential deals:- After Buying, Rehabbing and Renting out, will it appraise for 143+% what you have into it? 

Otherwise, when you come to the Refinance part and find out that Lenders will only let you cash out 70% of their appraisal, you won't be able to get all your original cash back!

This is my "143% Rule" (Biggerpockets seems to love percentage Rules). The example I use is: if your purchase & rehab costs total $100k, you will be needing your Lender to appraise it at NOT LESS THAN $143k, otherwise their policy of only lending 70% value won't get you back all your original dollars (ie. $143k x 70% = $100k, = all your original dollars back)! 

That's the way you get to: Repeat, (needing no extra dollars of you own)! Welcome to BP. Cheers...