Problem with refi out of hard money

[Joshua Joseph]

I am a new investor that made some newbie mistakes on my first deal. At this point I'm trying to learn from it and move forward but I have been spinning wheels as of late. I purchased a rental property in a small city outside of Houston Tx using hard money. My rehab is complete and my tenant is lined up but finding a lender that will refinance me has been a struggle. I have this property in a LLC and will need to keep it in a LLC because my DTI is a bit high and my personal name will not qualify for another mortgage. The biggest issue I have been running into is most lenders will not refinance a property with less than 100k balance. Here are my numbers, I know they are not great at all but I'm sure my next deal will be better. Any help or anyone that can point me in the right direction would be greatly appreciated!

96k Purchase price

85k hard money loan balance

120k Appraisal

[Lee Hampton]

Mike is spot on. Your main challenge is your DTI, even though the asset is in name of LLC, you will likely need to personally guarantee the loan which will ultimately lead to your credit and DTI. If tenants have paid two months rent, you may be able to use that rent to increase documented income.

I'll inbox you a couple of local/community banks that might be willing to lend.  It would be helpful if it is a lower income community which will help their CRA rating.  Also, if there is a community bank in close proximity to the property, you should speak with them as well.   Do not waste time with the Large/National banks.