Chicago Cash Out Refinance

[Terrence Bayly]

I recently purchased a SFH in the South Chicago suburbs 1 month ago to BRRRR. I identified a lender at the beginning of the process who said they would be able to do a cash out refinance once the project was complete and did not require a 6-12 month seasoning period. We went ahead with the project with renovations on schedule to be complete this weekend and a tenant ready to sign a lease. We did the entire project in cash so own the property outright.

Purchase: $90k

Reno: $10k

ARV: $140k

Rent: $1,350/mo

I am getting everything teed up for the appraisal and cash out refi. The lender is now telling me that they can do the refi without the 6 month seasoning period but only for an amount up to the purchase price. This somewhat defeats the purpose of a BRRRR. We don't want to wait the 6 months if possible with all the discussion of potential drops in home values, uncertainty with covid, unknown market trends after the election, etc.

Does anyone have any recommendations in this scenario to get my money back out of the deal without a 6 month seasoning period? Ask around other lenders? HELOC?

I bought a second property with similar numbers in the same area for which I will need to execute a similar strategy.

Thanks.