Cash Out Refinance - BRRRR

[Jackson Halverson]

Hello, I am new to real estate with a quick question upon the BRRRR method and the cash out refinance. If I buy the run down property out right with straight cash do I still have to wait the 12 month hold of ownership before I can refinance out? Or does this only apply to investors who are acquiring a loan?

[Alex Bekeza]

@Jackson Halverson The most recent Fannie/Freddie changes affect deals with a 1st position lien on the property so you would have conventional options prior to 12 months if you close all cash with no loan but there will be LTC (loan to cost) limitations. Whereas you could opt for a DSCR loan as early as 90 days of title seasoning regardless of LTC, there being a loan on the property, etc. Just a straight up, asset based approach allowing up to 75% of ARV with as little as 3 months on title.