Can someone help? BRRR with PML or mortgage

[Casanova Brooks]

I have a property I am looking at purchasing for about $250k as a buy and hold for about 40% under market value and doing BRRR. My question is if I was to use a private money lender or even hard money lender how would it look when I went to refinance? Would a bank still look for me to come up with down payment when looking to refinance or would I be able to take it out of the ARV?

Also, would you say private money is the best way to go if I could get a conventional loan go that route? I ask because I have funds tied up so my concern would be coming up for down payment AND rehab money. Any insight is appreciated. Thanks!

[Kenneth Garrett]

@Casanova Brooks

I use private money all of the time. You would only need a down payment or funds if the ARV doesn't appraise enough. Depending on the bank 75/80% LTV. If you use PML they can fund 100% versus Hard Money at 65%. You will need a good relationship to get 100% but it can be done. The money is expensive by me 12% annually. I usually only need it for 120 days.

Good Luck.