BRRRR stratagy, Refinance

[Casey Boerger]

Hi, I am looking into buying a rental using the BRRRR strategy using private money to finance the purchase and rehab cost . i am curious about the rehab part.

-How much LTV i can get back?

-How log after the rehab and appraisal are complete, will I be able to refinance?  

-how will my DTI and credit score effect the refinance?

-should I talk to a mortgage broker about the refinance before getting serious about a deal?

[Brock Thomas]

I am currently doing this on a property in Kansas City. I built my portfolio with the BRRR strategy before I knew it was called that. Most of my loans are with a local bank but I want to lock my rate for the term of the loan with rates trending up. So right now there isn’t really seasoning even for a cash out refinance like I am doing... lending has loosened up finally. So my loan will be sold in the secondary market to a Bank of America or some other large bank. They will go to 75% LTV. So I bought the home cash for $73,000. I will have $15,000 in the rehab and it should appraise for $140,000. Solid deal. I anticipate rent will be $1100-1200 month. Just finished painting it yesterday so marketing for rent starts today.