Seems like a really balanced and prudent approach.

He *seems* to be making an effort to square people away and talks all sincere, but everything we've seen to this point I won't trust a word of it until my balance in full is wired into our checking account.

To get this amount through a cash-out refinance at 80% LTV, the home value must be at least $453,800 after one year.Based on your report your ARV right after reno is $425,000Add a 8% home appreciation for one year $34,000Estimated Home Value After 1 Year:$459,000Assuming a refinance after 12 months with a property value of $459,000: New Home Value (Post-Appreciation): $459,000 New Mortgage Amount (80% LTV): $367,200 Existing Debt Balance after 12 months: -$360,000 (because you have been paying interest only) Assuming Bank fees on New Mortgage: - $200 Cash Pulled Out: $7,001, allowing you to recover to pay only 7k on your initial investment of $29,790, leaving $ $22,789 in the deal.Many new investors mistakenly believe the BRRRR strategy ends after the cash-out.

The vast majority of "regular" or traditional (Conv/Govt) mortgages are originated by specialty lenders and brokers and are sold in the secondary market to provide yield on bank balance sheets (think Chase or BoA) or to be securitized into MBS.

@Tom Stevensonyes, when I BRRRR I typically use my own cash for the down payment, and a hard money loan for the balance. 

The note investor who thought interest is paid on the original principal rather than the unpaid principal balance.  

Focus on a market that has a good balance of cashflow and appreciation (some markets have great cash flow but very little appreciation or vice versa). 

Like Tarik and Christine.. or than merril or any of the others. its a natural progression and the HUGE money is made selling the information. to be fair and balanced like Fox news.. there are always a % of folks that come through these trainings that do quite well and the money they spent forced them to take action.. its just the other 90% who spend the money and well never really do anything..

Balancing rental income, appreciation potential, and location can provide a primary home and a long-term investment portfolio.Good luck!

Home values typically fall between $150K–$200K, which provides a solid balance of affordability and appreciation potential.