BRRRR cash out refinance after 6 months

[Michael Vasquez]

I see a lot of people talking about the BRRRR strategy and being able to do a cash out refinance after 6 months, but I can't find a lender that can do it sooner than 12 months. I've tried at least a dozen local banks and portfolio lenders. The terms I've been given have been between 15, 20 or 25 year amortization which won't work on the cash flow side for the BRRRR system. I only found one that will do it, but only at 90% of purchase cost which defeats the purpose of this strategy all together. Plus the interest rates are only going to go up at this point, so waiting a whole year will cost at least a 1/2 to 3/4 points more than now and I'd have to continue to pay a higher interest rate to the HML.

For all the people who have actually used this strategy, can you please message me your lender's contact info. I know not all lenders will work in all markets, but it's worth a shot. I'm investing in the Austin area now.  

Thank you in advance!

[Chris Seveney]

@Michael Vasquez

My suggestion would be to go to local REIA meetings and see who people are using. I am in Washington DC area and have not had any trouble finding local banks to loan with 6 months of seasoning at 75% if the appraised value