BRRRR - Keep or Sell Due To Higher Rates & Seasoning Changes

[David Millot]

My BRRRR is ready to refinance after 6 months of seasoning, and (surprise surprise) rates went up significantly more than I had anticipated. Add to that the reno took more $$$ than originally budgeted, and my updated deal analysis shows negative cashflow for several years if I refinance now at 7.5% on 80% LTV of $350,000 ARV. Do I 1) refinance now regardless of rates 2) Wait to refinance a few more months and keep an eye on the market (seasoning requirements changing to 12 months?????), or 3) sell now and move on.

[Jay Hurst]

Quote from @David Millot:

My BRRRR is ready to refinance after 6 months of seasoning, and (surprise surprise) rates went up significantly more than I had anticipated. Add to that the reno took more $$$ than originally budgeted, and my updated deal analysis shows negative cashflow for several years if I refinance now at 7.5% on 80% LTV of $350,000 ARV. Do I 1) refinance now regardless of rates 2) Wait to refinance a few more months and keep an eye on the market (seasoning requirements changing to 12 months?????), or 3) sell now and move on.

 @David Millot  Seasoning periods on Fannie/Freddie are changing to 12 months. That is a fact.  Cash out rates are a bit higher and of course the higher your balance the higher your payment. So, maybe simply refi what you owe on this one and get out of what is maybe a high rate hard money loan.