Buying from a Wholesaler to BRRRR to LTR

[Joshua Jones]

So, I'm new to real estate investing.  I want the best bang for my buck and don't mind researching 100 properties to find 1.

I recently found a wholesaler in my area.  Investwithben.com 

Seems to be wholesale prices.  Fixer uppers in many cases.  

I've found a lender that has access to hard money for 12-24 months at 10-13% that will include rehab costs in the loan, then you 80% Cash Out Refi based on the ARV down the road into a conventional loan.

I've got some good leads on Rehab teams and Property Managers.  

Is this a good plan?  Find good deals, use my own cash/cash value/heloc for down payment, rehab, rent, refinance, repeat?

[Matthew Davies]

Hi Joshua, in theory that's how it is done. I'm sure a few others will jump into this post and outline requirements for conventional loans - however, another option for the refinance is a DSCR loan. You should keep in mind when looking at deals, that max LTVs for DSCR cash out refinances are typically 75% LTV (& 80% if a rate/term). Furthermore, if you buy cash there are seasoning requirements. These range from 3-6 months based on the approach. Using the hard money lender for the purchase/rehab is a decent option if you want to ensure you have cash reserves, it also drastically reduces seasoning requirements - using "other peoples money" is a popular option to scale.