Doing a cash out refinance is very difficult with an owner occupied fourplex as it doesn't fit the normal mold - plus if we refinanced we would have to commit to continue to live there and we are ready to move up to more space. 

Yes - if you like the property, it's in a good area and makes good cashflow, I agree on just refinancing some of the equity out to get some cash to buy another building.

I've been talking to a few different banks about refinancing and pulling some cash out for some much needed updates and most banks only offer 5.5%-7.25% rates, with shorter terms, meaning higher monthly payments for us; meaning less cashflow. 

So lets say you borrowed $100k out of your 401k, bought a property, held it a year doing some renovations and then refinanced your cash out you would be making loan payments to the 401k.

The issue is, it may not be a property that can be Refinanced to pay back an initial down payment loan, doesn't seem to be in enough distress to get at a lower price and then add value to it.

I must be missing somethingFinal Analysis After Adding Half Bath and Refinancing the PropertyExpected Rental Income: $1,200/moExpected Annual Gross Income: $14,400Monthly ExpensesTax $88Insurance $56HOA (Includes heat, water, common insurance, building maintenance) $263Repairs $50Total: $457/moTotal Annual Expenses: $5,484Expected Annual Net Income: $8,916Cap Rate: 6% (based on home price after refi)Principal & Interest after refi: $457/moCash Flow: $286/moThis deal is a moot point as the building is already over its rental cap, but I wonder if I'm getting close to an accurate picture of the BRRR process.

This would cash me out of the property or leave very little in it.5) Repeat...This is effectively an alteration of the BRRRR strategy that involves newer homes, no repairs (plus repair warranties), and refinancing with the same conventional loan. 

After borrowing money from a lender for the purchase and rehab of the property, and then the refinancing, how is the lender making their money back?

Hello All, I'm ready to BRRRR my first property and after reading the BRRRR book I want to ensure I have the refinancing portion sorted before purchasing. 

Now I am working on getting a cash-out refinancing to secure a fixed 30 year mortgage.