BRRRR - Buy, Rehab, Rent, Refinance, Repeat
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Updated almost 2 years ago, 12/22/2022
DSCR Refinance Options on a BRRRR
I was hoping the Bigger Pockets community could lend me some refinance advice on a BRRRR. I am investing out of SW Florida (live in Sarasota, Florida) fulltime. I BRRRR our properties utilizing a DSCR commercial product for the refi. With higher interest rates, I have gone to interest only 5:1 DSCR loans to maximize the cash I can take out. I am beginning to leave quite a bit of equity in these deals as the lender requires a 1:1 loan ratio. On my latest refinance, I am looking at only getting about 55-60% LTV. On this latest deal, $375k all in w/ appraisal of $520k; but could only get a $305k refinance based on the rental income of the property. My questions, how do I leverage the equity left in the BRRRR deals? Or is there another commercial loan product or refinance strategy I should consider? (FYI, it needs to be a commercial loan product as IMO SW FL liability is simply too litigious to risk taking the refi out in a partner's personal name).