Worst Case BRRRR Scenario Explained with Real Numbers

Описание: A no seasoning DSCR loan is an investor mortgage that allows you to refinance a rental property based on its cash flow instead of personal income, without waiting months after purchase. These loans are commonly used in BRRRR strategies, but the appraisal outcome can dramatically impact how much cash you can pull out.

Learn more and read the full guide here: https://blog.amydebuskhomeloans.com/b...

In this video, Certified Mortgage Planner Amy DeBusk breaks down both the best case and worst case BRRRR scenarios using real numbers. She explains how an investor buys a property, puts money into rehab, and plans to refinance based on the after repair value, and what happens when that value does not come in where everyone hoped.

Amy walks through a scenario where the purchase price is around $60,000, the rehab is around $20,000, and the expected value is $120,000. Then she explains what happens if the appraisal comes in lower, forcing the investor to switch lenders and use a Plan B DSCR option that is based only on purchase price plus rehab.

You will clearly see how the loan amount changes, how much cash can be pulled out, and why having extra equity and backup options matters before you ever start the deal.

If you are using BRRRR, private money, or DSCR loans, this is a must watch so you understand the downside before you move forward.

For more real world BRRRR and investor loan education, visit https://talkingwithamy.com

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Timestamps

00:18 Certified Mortgage Planner introduction
00:59 The worst thing that can happen in a BRRRR
01:16 Best case BRRRR scenario explained
01:42 Out of pocket cash example
01:49 Purchase price breakdown
01:52 Rehab cost breakdown
01:56 Expected end value explained
02:11 Worst case scenario overview
03:12 When the low appraisal happens
03:23 Why you may need to switch lenders
03:32 How Plan B lending works
03:45 Alternate BRRRR numbers example
04:02 Plan B loan amount explained
04:07 Cash out difference explained
05:25 Website and call to action