BRRRR - Buy, Rehab, Rent, Refinance, Repeat
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Updated 7 months ago, 06/07/2024
Refinance Struggles/Question on my first BRRRR
Hello!
Rehab ($25-$30k) on my first BRRRR is coming to a close (Purchased mid January) and I am now hunting down financing. I paid cash for the property and am looking for an 80% LTV cash out refinance. I got a quote stating that they could give me an LTV that would cover the purchase price of the house + closing costs ($86k), which is roughly 66% LTV.
The ARV of the townhome should be roughly $130k. So here's my question:
Is it normal to take a pre 90 day LTV to recoup the purchase cost, wait the seasoning period, and refinance the rest of the cash out at a later date?
Or is it better to wait out the seasoning period with your loan balance (I used a HELOC so no hard money lenders or balloon payments) and just refi out in 6 months?
Also if any lenders in the Memphis area have advice it would be appreciated! Thank you ahead of time for any advice!
The first lender I spoke to essentially said 12 months seasoning is all they offer, which would be really unfortunate for my time frame on getting into another property. Is that a standard thing or just simply what one lender might offer? The other two I reached out to did not return my calls as of yet.
Thank you!
Casey