Cash or hard money to buy a BRRRR property

[Kristi Wolfe]

I have heard (from a hard money lender, so he is motivated to encourage me to borrow hard money) that it's much easier to get the refinance at the end of a BRRRR deal if the property is finanaced for the purchase vs using cash to purchase and rehab a property. David Greene's BRRRR book and other things that I've read say cash works just fine, as long as you make sure to get your preapproval for the refi before entering into a deal to make sure your exit strategy is in place. Assuming I have the cash, and the plan is to get that cash right back out in a few months, I'd rather save the headache, closing costs, and interest rate associated with a hard money loan, but not if that means I cannot refinance.

Can anyone weigh in on this?