Refinancing Issues with Recoverable Corporate Advance/RCA Loan

[Evan Wojtkowiak]

I've run into a slight roadblock with my BRRR strategy and need BPs input. I'm currently living in my first property which is a live-in flip and house hack single-family home. I was able to get into the home with little money down ($2,500.00) with the Florida first time homeowner loan ($15,000.00). The FL first time homeowner was the key to getting into the property with limited money down but is now a barrier for refinancing. The FL first time homeowner loan is a second position loan and will need to be paid back in order to refinance. The loan is forgiven 20% a year for five years until it is fully forgiven. There is currently $6,000.00 remaining on the loan. My dilemma is: Do I refinance and pay the $6,000.00 or do I sit on the sidelines for two more years?

Additional Info:

Total Mortgage: $165K @ 4.25%

Rehab: $60k (completed)

ARV: $325k-$345k

Current rent: $1,500.00 (House hacking)

Monthly payments including escrow: $1,350.00

I currently have over $150k equity in the property not being used. I’m looking to purchase a quadplex in the next 8 months. Any advice is greatly appreciated. Thank you.