DSCR to Cash Out BRRR

[Calvin Quallis]

Hi,
Purchasing a buy and hold property in the Hamptons, NY for $1,895,000. Will put $500K in property. ARV is $3M conservatively, with a really great reno can fetch up to $3.5M. Purchase contract has no mortgage contingency and needs to close in 60 days, so decided to do a DSCR with no prepayment penalty to cash out after repairs. Was told I cannot do cash out DSCR refi because I will have no rental income yet and I've held the property for about 6 months while doing the reno.

Any suggestions on which loan I should look at for at least a 75% LTV cash out refi. BTW: I'm self employed.

[Calvin Quallis]

Quote from @Steven Foster Wilson:

Quote from @Calvin Quallis:

Hi,
Purchasing a buy and hold property in the Hamptons, NY for $1,895,000. Will put $500K in property. ARV is $3M conservatively, with a really great reno can fetch up to $3.5M. Purchase contract has no mortgage contingency and needs to close in 60 days, so decided to do a DSCR with no prepayment penalty to cash out after repairs. Was told I cannot do cash out DSCR refi because I will have no rental income yet and I've held the property for about 6 months while doing the reno.

Any suggestions on which loan I should look at for at least a 75% LTV cash out refi. BTW: I'm self employed.

Is there a reason you cant wait the 6 months until the property is stabilized? Most lenders will have a 1.2 DSCR

 @Steven Foster Wilson You have a good point there. Hadn't considered that. That may be the answer. Get rents coming in if I can't refi out after the renovation and refi after I have 6 months of rental history.