BRRRR question - rent/refi order

[Michinori Kaneko]

Hi,

I know BRRRR stands for Buy, rehab, rent, refinance, repeat. Is there a reason why we want to rent before we refinance other than the 2 reasons I can think of below?

1. You can potentially include the rental income in your DTI calc.

2. You have less expenses while the property sits vacant.

However, if you know the property is going to get occupied in the next month or two, and you would rather put your capital to use faster, would you refi before renting? That's what i did on one of my properties but just wanted to check.  Thank you.

[Michinori Kaneko]

@Abel Pacheco @Account Closed both of you are correct. it is a freddie/fannie requirement to have 6 month seasoning period if you want to use their low interest rate 30 yr fixed loans. i go through a portfolio loan by smaller local banks, they offer not as great rate and most of them only gives you 15-20 year loans. however, i'd rather get the money back without waiting for 6 months so i can reinvest that money. i have to make sure that i can still cashflow with a 20 yr loan, but as long as i can, i could do 1-2 more deals with that same money i'm waiting to refi if i had to wait for 6 months.  I can always refi into a freddie/fannie loan down the line if i wanted to!