BRRRR problems

[Tim Richardson]

Hi creative real estate investors. I am trying to pursue the BRRRR strategy for both single family and a multifamily 4 plex here in Salem, Oregon, but am running into the refi issues. I'm wanting to pay cash for a property, fix up, but lenders are telling me they can only loan up to the initial purchase price (assuming it is only up to 70% apprased value), even if the appraisal comes in well over that. So I'm still left with cash in when the refi takes place. Has anyone successfully used this method and gotten their cash back? I'm all ears.

Do you have a lender that will work with you to get purchase AND rehab costs back at refi? Thanks.

[Mike Nuss]

@Tim Richardson the term you should be using when talking with conv lenders is "seasoning". How much seasoning is required to base LTV off of appraised value rather than purchase price? 6 months seasoning is common. Some places will want 12 mos seasoning.