All Forum Posts by: Clara Levy

(BTW, I'm actually expecting an ARV of $210K) I just needed the clarity - thank you all so much!

So Matt, the $105K has to go to pay the existing loan, and cannot me used as down payment for next investment property - that is what you are saying, correct?

Hi All,

I need some clarity on the last R in BRRRR, the Cash-Out Refi. Think of this like a math question please with a Yes or No answer.

If property is bought at $140K, 25% down meaning $35K. Rented out for $1500. Then 2 years go by. Still rented. And for XYZ/whatever reason the value/appraisal stays at 140K.

And Lender is willing to do a 80% LTV Cash out Refi. Will I really get 80% of $140K, meaning $112K? Even if my equity has barely increased from the initial %25 down? YES?

Or NO? Lender would only give me about 5% of the $140K, meaning $7k? (Because they have to leave 20% of equity in the deal).

Appreciate the clarification in advance.

@Jennifer Pauyo

Miami's in the house!!! 🏖🌞 Although looking to invest BRRRR in Jacksonville, FL. Already preapproved. Glad to connect!

@Oscar Quintana Thanks! Likewise!

I'm looking to BRRRR in Jacksonville, FL. I'm hoping someone can recommend a pro who's worked with long-distance investors, as I live in Miami, FL. So obviously reliability, trustworthyness and responsiveness are key. I really hope y'all can come up with a good one to recommend!

Some clarification please on the Refi step:

Assumptions:

400K purchase price house

80k down (20%, conventional loan)

40k Rehab

465k Reappraised ARV

Ok, so the Refi:

70% LTV

So is this correct?:

465*70%: 325k so in the cash out refi I can get 325k, ***did I turn my 120k (80 down + 40k rehab) into 325k?***

I know im missing closing cost in the first purchase but i know i can roll the second ones into the refi, and not talking about cash flow, just wanna know if im getting the Refi part right from BRRRR. Thanks!!!