BRRRR Investing During the Pandemic

[Quinton Harrell]

Greetings and blessings to the BP community, hoping you and your Fam are sustained. 

My wife and I closed on a bank-owned property in S.C. in late September 2019 with a plan to implement the brrrr strategy, which we're in the latter part of the process (seeking refi.). 

- $40k purchase 

- $35k in reno and holding costs, 

- ARV of $90k conservatively (3bd, 3ba, 2010 sq. ft)

We moved a tenant in on March 1st and cash-flowing $256/mo. Tenant's employment is secure and is set up on auto-pay for the next 12 months, but we technically only have March and April for pay performance metrics. One notion is to hunker down and wait this thing out for several months, with a solid tenant in place. However, I'd love to pay off our micro-lender ($30k) and investor ($35k) in the midst of all the uncertainty. The purpose is three-fold: To strengthen the lender/investor relationships for future opportunities, gain a better rate in a long-position mortgage, and capture a bit of cash to strengthen our liquidity position.

We're in VA and my flaw in the strategy is I wasn't consistent and aggressive in farming banking relationships in S.C. early in the process. Now, I'm curious - with the pandemic's financial relief initiatives front & center and banks trying to manage the demand while managing a new form of risk and lack of gov't guidance - is there clear opportunities to get refinancing done? And if there is, I'd like to get pointed in the right direction.

- Is the seasoning period 6 months from closing or 6 months of tenancy?

- Should I follow the wisdom of sitting back and waiting till the dust settles?

My gut says it's really been time to act, to get some cash and queue up for coming opportunities. Are there any portfolio lenders out there, in S.C. or elsewhere that I can be reaching out to?

Pardon me! Lots of questions packed into this, but I believe in the BP community's wisdom to deliver!

Thanks in advance for any insights,

Q