Delayed Financing and REFI

[Tony Mayo]

Hello everyone!! I am new to BP and can't tell you how much I learned over the last 3 weeks. I have 4 SFH's and after much research I realize I have done really well on 3 of the 4 properties... so at this point I just need to duplicate the successes!! To be perfectly honest I did these investments more for sport but at this point I have to finances to really get serious.

My goal is to acquire 6 SFH per year for the next 10 years...

I have a question about Delayed Financing. My strategy is to buy cash, rehab, rent and then refi (BRRRR).

1) If I use borrowed funds (ie 401k loan, hard money loan, personal HELOC) to buy the investment for cash, does this disqualify me from being able to do Delayed Financing? Some people say yes, some say no, some say yes but the refi proceeds needs to settle the borrowed source ie pay back the 401k loan... Anyone have a clear answer or experience with this?

2) If I use delayed financing, my understanding is I can access up to 100% of the ARV, but it is capped by my acquisition cost (including closing costs). So if I buy for $100k and the AVR is $200k, I can only get $100k which is 50% of the AVR, not 70%. Is this correct? What about rehab costs, can that be put into my 'acquisition' costs? So if I invest another $20k, can I then refi. up to $120k?

3) Lastly, I also read that if I wait 6 months (or 12 months depending on the bank), I can then REFI out 70% of the AVR? So in my example above I would be able to refi $140k. Does that sound right?

Obviously the property needs to successfully cash flow, which I totally get.

Thank you in advance!!