How are you refinancing your BRRRR

[Ryan Raven]

I’m curious on how everyone is refinancing their properties. I purchased two properties in May of 2020 with cash. I have completely remodeled one and am look to cash out refi. I’ve contacted numerous banks and credit unions. Not many are willing to offer 30 yr fixed rates on rental properties or I can only get what I purchased the property for. Also I do not have any W-2 income. Any help would be greatly appreciated.

I’m currently leaning toward refinancing for purchase price. However, I would be leaving around $14k in the deal and would cashflow around $350 after all operating expenses. Cash on cash return would be roughly 25%-30%. That is still a decent return, I was just not wanting to leave that much capital in the home. Thanks for your time and happy investing!

[Whitney Hutten]

@Ryan Raven Right now, if you want to use a bank to refi, you will want to look at commercial financing most likely with a local bank that carries their own notes.  Here is an article to help.  As you stated, without W-2 income or other income documented on your taxes for the past 2 years, you probably don't fit into the underwriting "box".  

There are a couple of national hard money lenders who have 30-year programs that will underwrite just the asset (do some digging!).

You can also look to find someone to carry a private note for you.  There are plenty of people who will do this (many use retirement accounts).  Take a look here and see who is buying notes.  Also, there are other companies that will broker notes as well (Marshall Reddick is one... I can't speak to the process as I have never used them).

The trick to getting money is building these relationships BEFORE you need the money.