Problem with BRRRR 85% LTV Refi

[Ian Irvine]

I'm having trouble getting a house refinanced at more than 75% LTV because it has been rented for the last 12 months and on the market again for leasing. All of the material and podcasts from Bigger Pockets say Buy, Rent, Rehab, Refinance at 85% LTV, and Repeat. How is this accomplished if it's not a primary residence or second home? What lenders will do 85% LTV in the northwest Florida area? Thank you, Ian Irvine

[Bill Gulley]

Are you willing to move in? 

70 and 75% LTV are the customary requirements for a refi of non-owner occupied homes. 80% is the norm for a refi without cash to you, and secondary market loans for non-owner occupied are still at 75%. Anytime you read stuff on the internet you need to be aware that you'll likely get sizzle, fluff or embellishments related to any system or method, what may be stated can be very true but true under unusual circumstances or apply in a certain area. There probably is some lender out there doing an 85% cash out refi under unique circumstances and it may not be a bank.

Before leaping into any "system" do your due diligence locally! Ask your lenders what their loan requirements are and ask if they are likely to change in the near future.

I don't really follow Brandon or BP podcasts, the ones I've heard have usually given a disclaimer as to their idea and that you should check with competent advisers, attorney and accountant. Add to that your lender!

The BRRRRRRRRRRR (if I have too many "R"s they are for rinse and repeat) idea is nothing new, the package is and the concept is named to give recognition so investors can identify the concept easily. Brandon's job is to excite and inform his reader, he does a good job at that and if he delivered ideas as I do, boring and wordy, the idea may not get across to the target market.

You'll also find that your ability to borrow at a set LTV will change with the number of properties you hold, so the rinse and repeat is not a given either.

Financing is the key to the door of real estate, if you don't or can't learn that aspect you'll have a rough time operating unless you just don't do any financing (not really a good idea for small investors, but whatever.)    :)