Brrrr strategy and house hack financing

[Lala Mala]

I have a question regarding house hack financing using Brrrr strategy.

I understand that I have to use hard money/private money to purchase & renovate the property. Since I’m trying to house hack, what financing options do I have to cash out refinance? 
Can I use DSCR loan if I'm living in one side of the property? What are the other cash out refi financing options do I have?

[Bonnie Low]

I don't think there's enough information to give you a good answer. It sounds like you don't yet own the property. You're looking at buying a property that is going to need rehabbed, correct? And it sounds like it's either a multi-family property that you will live in one part of and rent out the rest or perhaps you intend to rent out rooms in your rehabbed property? While there are some lenders who will finance purchase & construction rolled into one, they tend to want to work with experienced investors who have a few properties under their belt. Is this your first? You may be able to get a hard money loan to fund the purchase and maybe even some of the rehab, but again, legit hard money lenders usually are going to want you to put down a down payment and often pay for construction costs out of your own pocket. When the project is done, you go can get a conventional cash out refi loan and then put your tenant in there. If you need funding for both the purchase and the rehab you might be better off finding private money or consider using a 203k loan which is created just for this purpose. Owner occupied, fHA backed. Nothing that I know of in a 203k prevents you from househacking the property. Consult some lenders and banks to find out who is doing 203ks in your area. You'll also need to find a licensed contractor approved through the 203k process. Lots of beginners start out this way in order to get into a property for very low down and in order to not have to come out of pocket for the rehab.