BRRR Strategy - First deal with private lending

[Craig Koehne]

Hello all We are investors in the Katy/Houston Texas area and We are looking for our first rental for our portfolio and plan on using the BRRRR strategy to be able to multiple deals a year as we find them. We have a few private lenders are looking to work with us but I'm not sure how this works when you are just starting out. Our plan was to buy a property using the private money from our lenders at 8-10% interest and then refinance 6-12 months later and repay them their full balance. When talking to a bank they informed me that they don't take the rental income into consideration until after 2 years so to be able to refinance we would have to qualify on just the income from my W-2 job. I know at this point i don't think I would be able to qualify to cover both my primary residence as well as the rental. We will have enough to cover few months of vacancy in savings and lines of credit. So I guess my question is how can you do the BRRRR strategy when just starting out and qualify for the refinance? Thanks

[Casey Mericle]

@Craig Koehne

You could

1. Find really amazing deals 
2. Ask your private money people to hold for longer periods of time (2 years)
3. Only make deals on creatively financed properties and tell the bank that their rules don't apply to you

Now this is the quick and dirty version, but you can find much more about this at BP.  Best of luck.