The Refi 1 year limitation of the BRRRR method

[Jorge Martinez]

I have been listening to the various podcasts from the rookie to bigger pockets. I really like the concept of the BRRRR method. The other day I spoke to my finance guy and he told me that you have to wait 1 year before being able to refi on the property at the newer improved value. So basically I buy, rehab, Rent, and wait 1 year to Refi that property at the higher value. I was told that if i refi less then 1 year, the bank will use the sale price of the property as the value. Is there a way around this that people are doing? Why have i not heard of the 1 year wait on any of the shows? I hope someone can please help with this, because I really want to do the BRRRR method.

[Alan Lacey]

I am not sure who your finance guy is, but I would suggest getting a mortgage guy. You can use delayed financing with any conventional lender to refinance and take out price paid immediately, after 6 months seasoning you can refinance and take cash out of home.