Refinance Struggles/Question on my first BRRRR

[Casey Adams]

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

[River Sava]

Quote from @Clint Jusino:

Quote from @Jacob Sherman:

you can get no seasoning upto 80% as long as the rent covers the mortgage

Can you please share what lender can do this? I'm in a very similar boat and was told to do a DSCR loan you need to wait 3 months seasoning period.

Some lenders will allow under 3 months of seasoning however they will use the lower of cost basis and as-is appriased value when underwriting