BRRRR - Buy, Rehab, Rent, Refinance, Repeat
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Updated 12 months ago,
BRRRR Finance Options-Which Product or Methods are out there?
$50k purchase price, $7-10k in repairs. Cash Purchase and Cash Funded Repairs. Market rent $800/Month. Currently unoccupied.
Looking at purchasing and doing repairs within 1st Month and then finding a tenant(2-6 weeks) and then seasoning the property for 4-6 Months before applying for financing. Prefer to be able to use a new appraisal instead of "Cost" for Financing. New Appraisal should be in $70-75k range
2 Things I have questions about:
1. are there DSCR Loans for a small loan amount such as this? What are the usual LTVs on these smaller loans?
2. Is it usually a 6 month seasoning before being able to go for new appraisal and getting financed based on the ARV rather than cost.
I've done a lot of reading and from what I understand this is possible, just looking for verification, recommendations on path forward or alternate plan, and also some lender referrals for when this takes place.
My REI experience and financials are "good to very good" when it comes to the basic DSCR requirements.