Seasoning Period

[Rachel Pivonka]

We are working on buying our first rental property using the BRRR (buy,rehab,refinance,rent) in Knoxville TN. I am concerned about this "seasoning period" some people have mentioned where a bank will not finance the property if it has been bought or financed in the last year. We want to be able to do a cash out refinance soon so that we can do another deal once we get the property rented.

My questions is.... will it be easier to avoid a seasoning period for the cash out refinance if we initially purchase with cash (from our HELOC and 401k or hard money lender if we go that route) vs just buying the property with a bank mortgage and 20% down and refinance as soon as we fix it up ? This is assuming the house is in good enough shape for the bank to finance initially and that we are all in for no more than 75% of the ARV.

Any thoughts on this question or how to avoid the seasoning? Hope that all makes sense? Thanks!!