All Forum Posts by: Neil Adams

If you buy a house for 50k, and spend 20k in rehab, you have spent 70k. If ur ARV of said house is 100k, then you have successfully purchased a house at 70% of ARV. After getting it rented you refinance. Bank agrees to finance at 70% loan to value based off appraisal after seasoning period has ended. It appraised at 100k as anticipated. You now have zero money into the deal(minus holding costs, closing cost, misc etc.) rinse and repeat. BRRRR works on singles, multis, light rehab, heavy rehab. If you want to get all ur money out on a refi, you need a bank that can loan you a high enough LTV, or u need to buy at the right price. Condition doesn't matter if the numbers work on that particular property.