BRRRR with no income for refi.

[Tashina Taylor]

Hey guys! It's HAPPENING! I found a deal and I have a hard money lender ready to go. All we have to do is pull the trigger. BUT with the current state of things, there are a few hiccups that worry me. The property in question is an as-is Triplex. We're expecting to do some major renovations, so we will have to evict the tenants as the units will not be livable while we're doing that. This is supposedly an exception to the CV19 eviction moratorium anyway so I'm not TOO worried about that detail. The one I am worried about most is the cash-out refinance. The only way to get a refinance is if you're making money, right? So you HAVE to be making enough money from the units being rented out to count as sufficient income for the bank to refinance, right? I don't know why, but I feel like getting a refi is going to be a pain in the ***. Other than the rental income, we will not have anything else. Will the rental income be sufficient? if the BP calculator isn't lying, we should be pulling in ~$3,600 total and then expect to have a mortgage payment of $1200-$1700, depending on what the final accepted offer is. 

Does anyone have experience with trying to get their first BRRRR deal refinanced? Any help or advice in this regard would be appreciated.

[Marcello Di Gerlando]

@Tashina Taylor

Have you spoken with a banker yet about a refi? I can tell you that not many banks are doing cash out refis at the moment. CIVIL/shutdown related. I suggest you talk with a banker about your plans. Some banks require 1 and even 2 years of income before they will consider your rental income. Be careful your HML may scoop that property from you if you can't make good on the lone terms. Tread lightly do your due diligence. Good luck.