POTENTIAL OBSTACLES OF BRRRR

[Jason Malabute]

What are potential obstacles when trying to BRRRR? For example:

1. Are there cases when you can't refinance ?

2. If you buy the property in cash can you refinance?

3. Do you have to have a W2 job to refinance?  Do you have to make a certain amount from your job or business to refinance?

4. Can you always pull out 75% of appraised value in cash? Are there cases when you can't pull out the full 75%?

5. Does your yearly income and wages affect how much you can pull out from the refinancing ?

6. How soon after purchase and rehab can you refinance and pull out cash?

[Joe Villeneuve]

Originally posted by @Jason Malabute:

What are potential obstacles when trying to BRRRR? For example:

1. Are there cases when you can't refinance ?   

2. If you buy the property in cash can you refinance?

3. Do you have to have a W2 job to refinance?  Do you have to make a certain amount from your job or business to refinance?

4. Can you always pull out 75% of appraised value in cash? Are there cases when you can't pull out the full 75%?

5. Does your yearly income and wages affect how much you can pull out from the refinancing ?

6. How soon after purchase and rehab can you refinance and pull out cash?

 Answers:

1 - Yes.  There are limits in number of loans, and loan ratios that still must be followed.

2 - Yes, but that is considered a "complete cash out refi".  That means you would need to wait 6 months from closing.

3 - a) If the loan is in your personal name, then yes.  b) Yes

4 - a) No, b) Yes...and the amount (%) a lender allows isn't always 75%.

5 - Yes

6 - 6 months