BRRRR Questions on Financing

[Account Closed]

Hello BP, 

I am currently reading David Greene's BRRRR book and had a couple of questions.

In Chapter 9 - "The Value in Financing", there is a section discussing Conventional financing. He writes that for an investment property, the minimum down payment is typically at least 20% down. However, in talking to a lender recently, I was given this table: 

According to this, an investment property, 1-4 units can be acquired for 15% Down. 

Am I missing something?

I am looking to get started with BRRRR investing. I am able to qualify for a conventional loan. Should I not be bothering with looking at Hard Money options considering I am able to get more reasonable rates for the initial purchase ?

In terms of the refinance, the author advises getting pre-approved for the refinance before the purchase. If I am using a conventional loan for the finance, does the refinance typically occur with the same lender or a second lender?

Thanks so Much

[Chris Mason]

Originally posted by @Account Closed:

Hello BP, 

I am currently reading David Greene's BRRRR book and had a couple of questions.

In Chapter 9 - "The Value in Financing", there is a section discussing Conventional financing. He writes that for an investment property, the minimum down payment is typically at least 20% down. However, in talking to a lender recently, I was given this table: 

According to this, an investment property, 1-4 units can be acquired for 15% Down. 

Am I missing something?

I am looking to get started with BRRRR investing. I am able to qualify for a conventional loan. Should I not be bothering with looking at Hard Money options considering I am able to get more reasonable rates for the initial purchase ?

In terms of the refinance, the author advises getting pre-approved for the refinance before the purchase. If I am using a conventional loan for the finance, does the refinance typically occur with the same lender or a second lender?

Thanks so Much

 Guidelines are always changing, I wouldn't trust anything in a book to be current or reliable. 

Yes you can put 15% down on a SFR investment. The investment property interest rate hit will be double the 25% down hit, and there will be PMI. BRRR or flip is the only scenario where it makes sense.