BRRR People, How You Doin?

Question

Those who BRRRed it up for the last 5 years, with prices dropping big, are you under water?

Ben Bagnall · Answer

Cash-out refinances are set at lower LTVs than purchase loans.  I don't think BRRRR properties will be the first to go under water.

Ryan Stuckey · Answer

That's why cash-out refis generally max out at 75% LTV. It takes a 25% drop to go underwater (and even more % drop as the loan is paid down). Not there yet....

Michael Plante · Answer

That’s a long article I skimmed it but I missed the part where they said that rentals are gonna go down over 25%

Eliott Elias · Answer

That's the beauty about BRRRR, it doesn't matter if prices dip. As long as your property is rented you're okay

Mick Relef · Answer

You think we’ll drop much more?

BRRR People, How You Doin?

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