First Time Using BRRRR...Is This Bank's Terms Normal??

[Bryan M.]

First time BRRRR(er) here.

I bought a duplex in cash, one side was rented and I did a little renovation to the vacant side. I recently was able to rent the vacant unit at $675 and increased the current tenant to $600 (they were at $500), total of $1,275. All in for $105k.

My bank is willing to let me get a cash out refi on it, but here are the terms:

- Will loan 80% of the value (only because it's under $100K). Their determined value will be the purchase price or the appraised value, whichever is less. To have them loan on the appraised value, it needs to season for 12 months. 

- They will determine if they will write the loan on "global cashflow". Not sure what that means. 

- They will need to verify what I will be doing with the funds. This sounds crazy to me. I need to either show them contractor estimates for renovations on the property OR if I will be using the funds to purchase another property I would need to be under contract. Also, they would require a mortgage on the new property unless I put 20% down. They will not just give me cash, they need to approve the use of the funds. I bought my personal property in cash and got a cash out refi no questions asked, although it wasn't in an LLC.

Sounds like, to use the BRRRR method there are a lot of hoops to jump through. I'm not sure how you could replicate this with any speed.

Any thoughts on these terms?