BRRR Method Question

[Hai Le]

Hey there! I’m looking to purchase a house in cash for $20k, it’ll take 60k-70k in renovations which would take about 3-4 months and market value post renovations is about 160k.

Is there any way around the 6 month seasoning period to be able to cash out refi earlier than the 6 months that I’ve been told?

[Kenneth Garrett]

@Hai Le

You can use a DSCR commercial loan. I've never had a problem with seasoning. It does depend on the lender. Need to own it in a LLC or other entity. Interest rates are a little higher. Must cash flow. Ratio of 1.25 generally of rent - NOI. I always put a tenant in before I refinance to a DSCR loan. That way they can use my rent versus the market which may be lower.