Refi options to pursue for a BRRR deal

[Venkata Soma]

Hi Everyone,

I have currently acquired a property in Milwaukee, Wisconsin. I am planning to do a BRRR deal on this one. I have acquired the property through a short term loan with a ballon period of one year and at higher interest rate (12.99 percent). The appraisal for this property came to be 135K (sub-to) based on the scope of work given to the lending company . However the houses with similar sqft are somewhere between 150-160k. The purchase price of the property is 95k plus rehab is coming up to 25k. I am planning to do refi in April/May time frame this year, hoping to get Appraisal for up to 150k with 80% LTV making it a break even deal and also considering the rental estimates(1600/month). What are the options I should pursue when I refinance, should I pursue a conventional bank or a private lender? I know the interest rates are going to vary and I have good credit score/clean history. Please let me know.

[River Sava]

Hi Venkata - 

Some lenders have a very short seasoning period, less than 3 months if the numbers make sense. 

Also, I doubt you will find 80% LTV for a cash out. Most lenders are at 75% max LTV. Let me know if you have further questions, happy to discuss further.