Doing the BRRRR the right way

[Andre Taylor]

Hello.. I am currently doing my first BRRRR on one of my investment properties and had some hiccups through this process and I am hoping to get some tips on how to do the next one right. I bought my Quadplex in July 2018 for $85k. I put about $85k into it and had it fully rented by April 2019. TO finance the rehab I used peer to peer lending and cash from my account. Now Two months ago when i choose to re-fi . The appraiser called me up and asked me if i owned it for more than a year which I did and she said good because if I owned it less then a year then she would had to based it off what I purchase for and that was something I did not know. The appraisal came out to $230k and the local bank in my area was going to do a 70 LTV but I got rejected from my lender due to my debt to ratio being high. So I went to another lender and he informed me my previous lender should had removed the loans I was paying off with the refi before submitting it to the underwriting system to bring my debt to income ratio down. Luckily this new bank is going to do the refi. Now my question ....would it been better for me to do a Hard Money Loan to purchase and rehab the property ? Assuming the hard money loan doesn't show on my credit report to affect my debt to income ratio and since i would had bought the property cash and i would not be bound by the rules of holding a property for a certain time before refi if i had a mortgage on it. Look for tips on how to do this BRRRR method right?