BRRRR Strategy Financing

[Jacob Eddy]

So in the Beginners Guide, Brandon mentions that you're not likely to be able to obtain a conventional loan for a property that needs rehabbed.  Is this usually the case, even if you have a decent size down payment of 20-30%?

[Derek Robinson]

If you have the cash, I'd say purchase all cash, then refi later. Why pay private money interest rates if you already have the cash? Especially if you BRRRR correctly, you'll be getting all that cash back anyway.

Just be aware that a lot of banks require a 'seasoning' period of 6 to 12 months of ownership before they'll finance a deal.  I've got a bank that will refi in 30 days, but their rates are slightly higher than a conventional bank.

I'm in West Asheville if you ever want to get together to talk investing!  I'm no expert, but real estate investing provides me with 100% of my income currently.