Cash-Out Refi or Conventional Loan

[Caleb Childs]

My fiancé and I are in the process of closing our first deal using private money. The property is a SFH and we are trying to decide whether to flip or use BRRRR Strategy...my question for BRRRR is if it would be best to put the property in our name and do a cash out refi post-rehab to pay our lender back (her father), or potentially keep the property in the lender's name and purchase the property from him using a conventional loan after the rehab. Any help would be greatly appreciated!

[Brie Schmidt]

@Caleb Childs - First, make sure you qualify for the loan.  Lending guidelines are the same if you are buying or own it.  So if you would not get approved for the full value now, you will not get approved for the cash out later

I would buy it in your name now, and do the cash out refi.  1 closing and 1 financing charge.  If you had the Dad buy it and then buy it from him you would pay transfer taxes and title fees twice