BRRRR applied

[Russell W.]

Hey guys, hoping for some insight on the "refinance" part of the BRRRR strategy.

I bought a 3 unit building about 6 months ago, 6% down. I had a discussion with my lender today to explore the possibility of a cash out refi after a year or so. She said that with a loan-to-value that high there is no way of pulling cash out, not without a huge leap in appraised value after the "rehab" stage, closer to 20% equity. 

Who here has applied the BRRRR strategy with a low down payment purchase, and did you have issues gettig past the LTV? Thanks in advance

[Charlie Fitzgerald]

Your lender is giving you the answer.  In a year, the value of the asset will determine if you have any/enough equity to refinance and take any cash out.