BRRRR - Buy, Rehab, Rent, Refinance, Repeat
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Updated about 2 years ago,
How do I dummy proof my cashout rehab?
I am Currently under contract for my first BRRRR deal. I used a cash out REFI to purchase the deal but that will leave me with little to no rehab budget. Im curious to see what your thoughts are as far as obtaining financing for the rehab.
My goal is to at least cash out refinance out my rehab budget, Get some tenants in there and quickly pay down the remainder of the loan and cash out refi once more for another project.
What are some techniques I can use to make sure I can pull out my rehab budget when i refinance this property at its new value?
Will having a larger DTI (cash out & Rehab loan) affect my ability to get a cash out refi loan?
The last thing i want is to get denied for a cash out refi and be stuck with a high interest rehab loan.
Thank you for your input!
-Ram