Ep 20: Does BRRRR Still Pencil in Iowa? Run This Math First
Your BRRRR deal looked great at purchase. So what happens when the appraisal comes back $30,000 light?
Everybody underwrites the buy. Almost nobody underwrites the way out. On a three-bedroom Beaverdale bungalow bought at $180,000 with a $45,000 rehab, the refinance is where the deal either frees up your cash or traps it.
Same house, same rehab, same lender, and one soft appraisal can double the money you have stuck in the property, from $22,500 to $45,000. That is also the cash you were counting on for the next house.
Neil Timmins and Maggie Monroe walk through the three dials that all have…
The skinny
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