What’s a good seasoning period for the refinancing part of BRRRR?

[Kevin Skolits]

Hi all - I'm working on getting my ducks in a row for my first BRRRR.

For the Refi component — my mortgage lender says there would be a 6 month waiting period if I go through an HML. This seems like a costly and long period of time holding an HML. What seasoning period do you all typically look for? And how could I go about finding a lender with a shorter time waiting period? I'm searching in the Chattanooga market.

[Bradley Laddusaw]

Hi Kevin,

There are actually loan programs offered by many HML companies out there that are great for the BRRRR strategy. They do not require a seasoning of rents and do not put much weight on your initial purchase price. Rates start in the 5's for a 30 year fixed. Though going through a credit union or bank will of course get you slightly pricing and rate, there are more hoops to jump through. At the end of the day it comes down to opportunity cost and your overall strategy.