BRRRR Question

[Wells Lange]

Is the 6 months until you can cash out refinance only if you bought the property with a mortgage? What if I bought a house all cash and used private money to fund the rehab? Could I simply go get a 75% LTV mortgage after I get a tenant in there?

[Jerry Padilla]

@Wells Lange

@Percy N.

@Tarl Yarber

@James Masotti

A couple different scenerio's here..........

If the house is purchased and has liens against it; mortgages, rehab liens, private money, hard money...... These liens can all be rate and term refinanced based on the appraised value and required LTV, without any seasoning requirements.

If the house is purchased with cash and there are no liens against the property, then prior to 6 months you still go based on the current appraised value, and LTV's but are subject to the maximum of your initial investment - purchase price plus closing costs, where's after 6 months you are just limited to the LTV's.

I am glad to send you a link with more info on the LTV's.

I have clients that purchase with private money and rehab with private money than rate and term this loan without any seasoning requirements.