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Updated over 6 years ago,
Help with analyzing first Brrrr deal
Hi BP community,
I was hoping to present my 1st possible Brrrr deal to see if any members feel Im on the right track to pull the trigger. I have utilized a cash out refi in past for further financing but on a property owned for several years never on a property with a turn around time as potentially quickly as this....
I bought a 2 bedroom property in need of light rehabs which did not require a renovation loan to acquire. I put about 5k into repairs flooring, paint, appliances, fixture upgrades, and converted a bonus room into a 3rd bedroom. I put a majority of this on an interest free credit card I have 15 months to finance at the 0%
I paid 100k 8 months ago and owe about 84k with a 5.25% rate. New rate including the cash out refi hit would be 5.625- 5.75%
House across street sold a few months ago at 135k and this week 2 more comps closed at 125k and 145k. However, my realtor (my wife) believes the value to be on the lower side. There are also a couple 2 bedroom similar sq footage homes however with basements under contract could potentially close in line or higher if close near their list price.
I am going on month 8 of owning the property so I have already met the 6 months seasoning requirements by lender. The numbers are close but kind of tight. I am carrying PMI so if nothing else I can drop that for sure, but in the opinion of those who have experience would you pull the trigger or wait for values to continue to increase? My other options to secure financing are helocs or lines of credit however I dont want to apply for this all at once.
Thank you in advance to those who read and are taking the time to share their advice! Always appreciated!