Skip to content
×
PRO
Pro Members Get Full Access!
Get off the sidelines and take action in real estate investing with BiggerPockets Pro. Our comprehensive suite of tools and resources minimize mistakes, support informed decisions, and propel you to success.
Advanced networking features
Market and Deal Finder tools
Property analysis calculators
Landlord Command Center
$0
TODAY
$69.00/month when billed monthly.
$32.50/month when billed annually.
7 day free trial. Cancel anytime
Already a Pro Member? Sign in here

Join Over 3 Million Real Estate Investors

Create a free BiggerPockets account to comment, participate, and connect with over 3 million real estate investors.
Use your real name
By signing up, you indicate that you agree to the BiggerPockets Terms & Conditions.
The community here is like my own little personal real estate army that I can depend upon to help me through ANY problems I come across.
Mortgage Brokers & Lenders
All Forum Categories
Followed Discussions
Followed Categories
Followed People
Followed Locations
Market News & Data
General Info
Real Estate Strategies
Landlording & Rental Properties
Real Estate Professionals
Financial, Tax, & Legal
Real Estate Classifieds
Reviews & Feedback

Updated over 7 years ago,

User Stats

77
Posts
11
Votes
Brett Hearn
  • Investor
  • Hanford CA
11
Votes |
77
Posts

BRRRR strategy for a hard money to conventional

Brett Hearn
  • Investor
  • Hanford CA
Posted

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

Loading replies...