All Forum Posts by: Account Closed

I am going to try and keep this brief. Currently I am in negotiations to purchase a home. For reasons here nor there, I would like to back out of the deal.

One of the things we discovered during the inspection was the fact that the water heater was older than they disclosed (6 years old, said it was 3). So my question simply is, is this enough grounds to stand on to be able to get my earnest money back? Also the inspection fee and appraisal fee.

I appreciate any support!

Question on understanding the BRRR method from a high level. For example, and I'll make it very basic and I understand it's more complex than this but, if I buy a house for 50k, put 20k into the rehab, and say it's done with cash so all in cash I'm at 70k. And the ARV is supposedly 100k. When I go to refinance after 6 months, and the bank gives me a 70% LTV (so 70k loan), here is where my questions start:

Do I now have 30k in equity in this house and the bank realizes that and can finance the 70k and make monthly payments on that?

I get a little lost on how exactly the refinancing works. Any explanation will help, if I need to clarify or provide additional information let me know please. I appreciate it!