BRRR Strategy - Question

[Daniel Ramirez]

Hey Guys/Gals,

So I'm under contract for my first true rehab project in Charlotte, NC and am hoping to close here in 2 weeks. I'm using a HML to finance part of the project costs, and as most of you well know, the cost to borrow is not cheap.

Initially, this was going to be a rehab/flip. However, given the rapid appreciation in the neighborhood where this property sits, I'm considering rehabbing, renting, refinancing in order to hold and cash in on some equity growth over the course of 2 years.

My question to you all is, once it is rented out, what is the quickest way to refinance the property? I've been working on a cash-out refi on one of my rentals that is free/clear and it has been 3 months and still no close! They keep telling me their is a market-wide backlog given the low-rates and their underwriters are swamped.

My concern is that once I rent it out, it will take 3 months to refinance, over which I will be paying 12% interest on the HML.

All you BRRR folks - care to share your thoughts?

Thanks!