Hard money loan repayment ? for brrrr deal DSC question

[Michael Nelson]

Hi everyone, heres my BRRRR situation

purchase price 520,000

rehab 25,000

Appraised at 600,000

Rents are now at 1950, 1850 and 1600 totaling 5400

My question is can i get a DSCR to take out all 545,000 as the rent roll to to a mortgage for that amount would ratio out to around 1.4 but....obviously appraisal is not high enough for 80/20

Any info on this or suggestions would be great. Trying to get as much as possible back out

[Deborah Wodell]

The appraisal is definitely a key factor here. Most lenders will cap the LTV at 75-80% of the appraised value, which means pulling the full $545K may be challenging. Another possibility is ordering a second appraisal—sometimes values can vary between appraisers, and a fresh report might come in higher. If the market in your area is trending upward, waiting a little longer could also help increase the appraised value.