BRRRR strategy for a hard money to conventional

[Brett Hearn]

Hi everyone,

So here is the deal. I have a property under contract for $77,000.00. Its not a terrible unit in a C+ to B- area. I'm using a Hard money loan to purchase at 10.5% interest only , with some fees, then plan to put about 5-6K back into the property to refinance in 6-7 months at a conventional 5% amortized over 30 years. I plan to bring the property to an ARV of about $115,000, and rent the property for about 800-850, and use the cash-out refi strategy. I have talked to lenders in the area and say that I should not have a problem refinancing if the property is in "decent" condition and my credit score and income are both ok, which they are. I see a lot of people talking about DTI and I'm not sure if I would need to worry about that when it comes to refinancing. Any other suggestions on the deal would be helpful. Thanks