BRRRR Refinance Language

[Justin Holley]

I am about to complete my first true BRRRR. I am in the refinance phase of the project. Here are the details. This is a single-family residence, ARV 90k, purchase price 20k, rehab was 38k. I am looking to refi into a 30 year conventional at 75% LTV. The problem I am running into is when I speak to local banks they are saying since it's an investment property the rate will be bumped up to 7.5% even though I have stellar credit. My question is the following. Am I presenting my property incorrectly to the lenders? Please forgive me but I thought one could get traditional financing on SF BRRRR properties. What am I missing here?

[Justin Holley]

Sorry, I should have included the following info. Purchase was in cash and rehab as in cash (no private money, hard money or lenders). I recorded a mortgage on the property with my LLC, so I could refinance without a seasoning period and without it being a cash out refi. Anyway, the bank has been given none of this info. They only know that I am requesting 75% LTV refinance. The bank seems to be hung up on it being a non-primary investment property even though it is a single family.

@Andrew Postell has a great post on the LLC mortgage strategy.