Can you BRRR a Subject 2 Deal?? If yes, how?

[Horace Hayes]

Im working on my first Subject 2 deal however my usual exit strategy is BRRR. The home requires heavy renovations even before making it livable so after renovating what are the options to refinance? Or is my only option flipping to sale?

[Ellis San Jose]

Originally posted by @Horace Hayes:

@Ellis San Jose thanks!  Im using personal funds to renovate so bank financing won't be needed.  My main concern is after renovations are complete, since the owner is still "technically" liable for the existing debt and I am only added to the deed (basis of a Subject To deal) will I be able to complete a cash out refinance under these circumstances?  The only option I can think of is either selling the property or I purchase it myself for the initial agreed upon price, which seems contradicting to a Subject To deal.  

An issue that may come up is how the property is titled. I frequently take title in the form of a trust for sub-to. To get a traditional HELOC the lender will require the title to be in your personal name. Great question, especially now with banks making their lending rules much more stringent. Best to verify with a loan officer in a bank.