All Forum Posts by: Dilini Sundaram

How does the refinance in BRRRR work if you own 100% equity in a property? Will a bank still finance it? I am having trouble even explaining the situation to a bank. I bought the property for 175. now worth 230. One bank told me I need to purchase the property FROM my LLC in order to do this. Any ideas?

Is that how people do BRRRR though? They take a cash out refi, then get ANOTHER mortgage on top of that? Or am I missing something?

I do have other capital I could use but I feel like I could capitalize on the value of the property going up so much (didn’t do a flip just went up because the housing market is hot). 

Currently cashflows about 18k a year-after the refi I assume it will be more like 7200. What confuses me on BRRRR is that aren't you significantly depleting your profits because of the refi rate, then taking that amount and getting a mortgage. (My situation is a bit different because of the 100% equity, but let's say I only had 60k equity) Then I would refi at 4.25, then get a mortgage with that 60k at 3.5. Am I missing something with BRRRR

I am 6 properties deep, started in 2018-plan to close at least 4 more deals by year end. I house hacked a lake home in Burnsville, MN. SO easy to get friends to move in with the appeal of the lake (boat in summer, flood a rink in the winter). Had 5 of my buddies move in. One of my friends, lives in one of his friends house in uptown but is in the opposite situation. His friend plays for an NHL team out of state, so he is not there majority of the time-but his friends mortgage is getting paid down while he is playing and his friends are living in it. I say-why wait until after your career is over?! Start now. You will thank yourself later. Would love to connect!! 

Everywhere I look I see investors using the BRRRR model. I purchased properties in cash just to pilot my real estate endeavor with minimal risk, but now want to start leveraging the bank. Property I bought for 178 in 2018, now worth 220. Should I do a cash out refinance to fund my next rental to capitalize on the increased value or a conventional mortgage? If I did a cash out refinance I would buy in cash with those funds, because I do not want a mortgage on top of my refinance rate. Also, are there any big red flags I am missing in regards to refinancing vs conventional mortgage? Look forward to hearing any and all ideas!!