Executing the BRRR Stragegy

[Erick Garske]

I a executing the buy, rehab, rent and repeat strategy. 

That said, now that I had purchased a property with all cash, rehabbed the property I am ready to refinance and use the cash out proceeds to purchase another property. 

I had expected to get a rate of 4.65% to 4.75%, but these are the terms that I was offered from a lender:

Rate: Between 7.5% & 8,25% Fixed for 7 years, [a 7/1 ARM] Fully amortizing P & I payment on a 30 year schedule. The loan adjusts annually after year 7 thru the remaining term. This is a PITI payment so the lender will escrow for taxes and insurance and will be collecting the state required reserves in advance at closing

What type of rate should I expect for a cash out refinance?

Thanks.