Refinancing on BRRRR property

[Richard Moreno]

Hello BP,

I am at the Refinance part of the BRRRR, and I was trying to find a lender that can cash out refi with no seasoning period ( I've only owned it for 2 months ) on an SF investment property I have in Pittsburgh. So long story short I found a lender that I follow on Instagram that uses private lenders for refinance deals and other flip deals etc. They can do 70% ARV with an adjustable rate after 5 years at 8.4% interest rate ! I think that's pretty high! But they base it on my credit and its an investment property.

I think the interest rate is high but its not a deal breaker, the good thing is that there is no seasoning period and they can cash me out in a few weeks. The property is about $90k ARV and I have about $75k in the deal, and we got it rented for $1100 a month.

Any advice ? should I take the 8.4%  

[Brent Coombs]

@Richard Moreno, do you mean: Finance it (rather than Refinance it)? If you already owe money on it but need to get out of HML, then a 70% loan will leave you with $12k (plus fees) out of pocket!

Which means: it's not BRRRR after all - because your REPEAT/S are supposed to be 100% OPM!

Also, your $600/m mortgage, PLUS all the usual ownership expenses, will not leave you with much cash flow. Normally that's not a big concern, IF you've got ALL your deposit back (which you won't have)! If impatience gets the better of you - you won't get the bargains you need! All the best...