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Updated almost 7 years ago on . Most recent reply

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Matt L.
  • Downingtown, PA
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Brrrr numbers after refi

Matt L.
  • Downingtown, PA
Posted

as I am analyzing houses to buy in cash, fix up and then rent out to use the brrrr method I get the first part of the numbers ran to find the roi is about 10%. But when I go further to find out how much I'm making after i take my cash back I'd only be making about 2k a year. I understand that essentially the house would be free and I am still making money after all expenses are paid but is that worth it? Just curious to see what other people are typically seeing number wise or if there is a general rule of thumb to how much is worthwhile after cash out refi. Thanks in advance.

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Brian Garrett
  • Real Estate Investor
  • Palm Beach County, FL
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Brian Garrett
  • Real Estate Investor
  • Palm Beach County, FL
Replied

I'll take an infinite return on my money all day every day.

Don't forget about gaining equity through appreciation and principle pay down.

And keep in mind that's after the equity you already forced through rehab.

Also don't forget about the tax benefits of rentals.

Plenty of reasons to LOVE the BRRRR strategy if you can find deals where they work!

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