BRRRR- What If I can't Refinance?

[Cathleen Blackmon]

Newbie Alert! 

I have found a deal and am in negotiations.  We plan on using hard money to purchase and rehab.  Once we have bought, rehabbed, and rented the property, what happens if we can't refinance?  

Lenders/Banks will not use all of our income due to commission being less than 2 years.  Also looking at my tax return it appears that the rental income divided by days rented get's me a negative cash flow (even when adding back in the depreciation).  This will shoot our Debt to income ratio out of financing bounds.  

Is our only choice to flip?  How can I refi this deal to pay off the hard money debt?

[Nghi Le]

There are asset-based lenders who will lend solely based on your cashflow and not your personal financials, so they don't care about things like DTI, pay stubs, tax returns, etc. So you can use these lenders to refinance instead of a traditional bank. They're going to be more expensive than your conventional lenders with rates ranging from 5% - 8%. The exact rate is based on things like LTV, credit, DSCR, and experience.

The comment about negative cashflow is concerning though... will it be cashflow positive once fully renovated and rented out?