Maintaining Credit While Using the BRRRR Method

[Ryan Collins]

So I threw the idea out to my father about BRRR'ing out his home to get a jumpstart with his investing career. He's got a very nice home in a Cleveland suburb that he owes roughly $55k on and it would appraise probably around $135-150k (my conservative guess based upon a comp up the street from him selling for $170k that has newer updates and finishes). He renovated the home fully in 2009/2010 and does a very good job keeping it up, adding new things periodically, etc. He's looking to rent the home out and move in the near future.

He's interested but highly apprehensive because he fears what the refinance portion will do to his DTI%. He definitely has a valid concern about refinancing and how it will lower his credit score for anything he needs to use credit on. Unfortunately I couldn't answer how it's possible to BRRRR and maintain your credit for him so I'm hoping someone here can give some insight in how to BRRRR and maintain a decent credit score. Or at least something on your experiences. Anything is appreciated. TIA!