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Updated over 5 years ago,
BRRR Refinance Question
Hi Everyone! I plan on purchasing a property for ~70k, putting 40-50k into it, and then refinancing after 6mo at 75% ARV of $165k after getting tenants in. I expect rent to sit around 160--1800 a month. I have saved enough money to do this 2x over without taking any hard money loans to do this, but recently left my employer of over 6 years to start a couple of things on my own. This will be in the same field, but it will take some time to get revenue coming in. I do have another investment property that I see about 500 a month come in with 25% equity in the house.
My question is, will the rent roll coming in on this property be considered by a lender for the refinance of the property? I fear that I will not be approved due to lack of income, despite having an 800+ credit score with a large sum in the bank (I'm aware of the risks from the lender side). Any advice would be appreciated!