Refinancing Problems Texas

[Derek Schronk]

Hello to everyone, 

My name is Derek Schronk and I live in Hillsboro, Texas. Roughly 45 minutes south of DFW area. I am 41 years old, farm for a living with my family. Buy and hold for renting is what I am going for right now, but not close minded to all the other possibilities of real estate.

I have bought a house on 5 acres last year. Before it was rented it was rehabbed. When I went back to the bank to refinance it, they said it could not be refinanced. The reason was because my primary residence is rural, and the investment home is rural too. 

Well, hear is the thing. The banker and the lawyer said that in Texas your homestead, (if rural) is up to 200 acres and does not matter how many houses you have on it, you can not refinance any of that property. Unless your primary residence is in the city limits.

So the BRRRR method is not going to work in this situation, if they know what they are talking about.

Is there anyone that can confirm this or not?

If this is true, is there anyone with any suggestions on how to get the equity increase out to fund another home.

Thanks Derek