BRRRR Lending Requirements

[Dan Portka]

I recently purchased my first property intending to do the BRRRR strategy. I was recently informed by the lender that there is a 6 month waiting period before I'm able to refinance. They told me I needed to have the rehab costs included in the closing documents... Because I didn't, the earliest I can refinance is 6 months from the day of closing. I checked the Fannie Mae website and I see there there's a requirement under the Delayed Financing section "The new loan amount can be no more than the actual documented amount of the borrower's initial investment". It all makes sense now, but in the books and podcasts that I've gone through there has never been any mention of this requirement. Now my money is tied up in the property for the next 6 months...

Is this just something I missed or do I have other options?

[Dakota Adney]

@Daniel Portka I’m having the same issue right now. There is one strategy around the seasoning period. I’m in the process of trying to use it, but it’s a little complicated. It’s explained in detail here:

https://www.biggerpockets.com/forums/48/topics/460294-how-to-cash-out-1-4-unit-property