Refinancing After a BRRRR

[Joshua Schmidt]

Well, we are almost finished with our first BRRRR and I know that financing/refinancing is a bit of a challenge right now. However, I am seeing opportunity down the road for lower rates if we hold out for a while. Its just a hunch, but listening to the recent BP Podcast, Mike Butler seems to think this way as well. So, for those of you that are finishing up, just finished, or in the next few months will finish up the Buy, Rehab and Rent parts of the BRRRR method, how long are you going to wait to refinance. I think there is a possibility of rates going down in the next few months and I think holding off 3-6 months may be our best option before we refinanced and pull our money out of this deal. Thoughts?

[Whitney Hutten]

@Joshua Schmidt I'm in the middle of a refi right now.  It's not about the interest rate, rather the rate of velocity of your money.  Rates dropping .25% doesn't save you that much per month.  However, if you had the cash back in hand to do another deal quickly and that deal yielded $200+ a month and built your equity by $25K... now we are talking.  This is calculating the opportunity cost of your money.

For me, in this environment where things are somewhat unsteady, I would refi while banks are still lending, terms are good and you had a stable W-2 job. I'm not sure anyone has a prediction on what it will be like in 6 months. Therefore this is a calculated risk.