BRRRR Finance Options During This Pandemic

[Alejandro F.]

I am currently looking to invest in properties in the Tampa Bay area (Florida). My primary strategy is to BRRRR these homes and pull back out as much capital as possible from the deal. I plan to purchase cash, rehab and refinance as quickly as possible/allowed. As I continue to research finance options, I see delayed financing as the way to quickly pull capital back out, especially if I can have rehab costs included in the settlement statement.

In the era of COVID, has anyone had success with delayed financing or other financing strategies that allow one to pull all or some of the capital back out of a deal?

Thanks in advance for any insight you can share!

[Zach Westerfield]

Many banks (that will do them) have tightened requirements on delayed finance. Im sure the mortgage experts will correct me, but i dont think you can pull out as much equity as you could a few years before. It is a challenging product to use, and many banks have never heard of them. 

I have stopped using them. I found a local bank that does rehab loans. These are interest only, 12 month loans. I can either purchase the property with them, or purchase with cash and immediately refi with one. Then I conduct the rehab, and wait the 6 month seasoning period for a cash out refi. This strategy allows me to use less cash, and move quicker without the hassle of trying to do a delayed finance with a bank.