Cash Out Refi for BRRRR (KC and Indianapolis)

Cash Out Refi for BRRRR (KC and Indianapolis)

Investor · Ventura, CA · Member since 2017 · 45 posts · 25 votes

Hey BP, I'm reaching out for some help with lender referrals. My business partner and I are pursuing the BRRRR strategy in KCMO and Indianapolis. We're purchasing SFR's and small MFR's all cash and don't want to wait out the traditional 6-12 month "seasoning" period to refinance. Anyone out there have experience with portfolio lenders or local KC/Indy banks that offer cash out refinancing? Any other advice you can provide on the topic would be much appreciated as well. Thanks.

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  • Rental Property Investor · Prairie Village, KS · Member since 2017 · 62 posts · 36 votes
    7y

    Research delayed financing and including rehab costs in escrow on your HUD statement. Alex Felice spoke about it on a recent podcast and it sounded interesting.

    Cameron

  • Investor · Ventura, CA · Member since 2017 · 45 posts · 25 votes
    7y

    Thanks for the tip @Cameron Pendergraft. I’ll definitely look into that. 

  • Guy with Great Hair · Austin, TX · Member since 2013 · 2k+ posts · 4k+ votes
    7y

    I've spoke and written a lot about delayed finance. It's a fannie mae program for single family homes to remove seasoning periods. There are some restrictions:

    You can finance 75% LTV or 100% of HUD1 whichever is lower

    you can't use borrowed funds

  • Investor · Ventura, CA · Member since 2017 · 45 posts · 25 votes
    7y

    Thanks @Alexander Felice. Very useful info.

    Here’s a link to Alex’s article for anyone else interested in this strategy: https://www.biggerpockets.com/renewsblog/work-with-lenders-brrrr-method/

  • Mike D'ArrigoPro Member
    Turn key provider · San Jose, CA · Member since 2010 · 4k+ posts · 3k+ votes
    7y

    @Adam Reynolds It's a misconception that you have to wait 6 months to refinance. Under the Fannie Mae Deferred Finance Program, you actually have 6 months to refinance and if you don't do it in that time frame, you have to wait 12 months. Check the program out.

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