BRRRR HELP! hit road block, need advice!

[Luke Slapa]

Need help/advice.

I found a good deal with a tenant already living in the SFH. I want to BRRRR it(maybe holding off on repairs) but have hit some road blocks. I have the deal under contract now and am starting to talk to banks about Cash out refinance but it seems that in Texas you must live in the home to do a HELOC. Some banks want me to own the property for at least 6-12 months before I can refinance/pull out equity. All I really need is 65%-70% of the appraised value. to pay back private money. Also, the bank wants to be first lien holder. I just started to seek Private/hard money but want to make sure my refi is set in place. Does private money/hard money ALWAYS go as first lien? WHERE DO I GO FROM HERE??? I need cash to close on the house then need to pull out equity to pay off my lender.

Here are the numbers:

Purchase price: $21k

Appraised value: $36.5k

Rent(have a long term tenant): $600/mo