BRRRR - Refinance Timeline

[Lane Nelson]

I am in the process of doing my first refinance on a rental property that I originally purchased a year ago. The same lender that did my original loan is doing the refinance. I'm a little over 2 weeks into the process and asked the lender how much longer it would take to get everything finalized. I was told a useful life review was the last thing remaining. What is the typical time frame for a refinance and what is a useful life review? Any insight would be much appreciated.

[Jonathan Taylor Smith]

@Lane Nelson, I spent much of 2018 refinancing several BRRRR properties with 3 different lenders (each of whom were different than the original lenders) and the time-frames for each ranged from as little as 21 days to nearly 90 in one case, which was extremely frustrating. Sometimes they go very smoothly and quick, but others required appraisal disputes and title work. I always tried to make sure that nothing was pending on my side, by fulfilling each document request the same day it was made.

And some of these refi's were rather tricky in the timing because they were 12 month hard money loans needing to be paid off with the refi lender also needing 12 months of seasoning before they would make the new loan - with just days of grace period overlap to complete the refi's.

As for "useful life review", I assume this refers to the major systems, such as roof, hvac, etc... as they may wish to see reserves on hand to cover those replacements when needed.