BRRRR - Queston on how to do the Refinance

[Philipp Schwarzbart]

Hello BP! I am about to finish the renovations in a BRRR deal I live in myself. I owner occupy the house (3/1) and do all the work myself. After I am done in a couple months I will have added about 50k of additional equity to the house + cash flow of about $1.5k per month (I added an additional unit to rent out in the back of the main house, I have now a 3/1 as well as a 1/1). My goal is in this case not to take cash out (I bought the house with 5% down and after the refi will have 20% equity in the house) in order to keep my rate low to cash flow when I rent the house as well as the ADU out.

After talking to several lenders I was told that they only refinance with the lower owner occupied interest rate if I stay in the house for another year after the refi. However my intention is to move out and do another BRRRR and do not want to stay a full year.

How can I avoid that 1-Year rule after the refi? I could do the refi as an investment property with a higher interest rate however I would like to avoid this if possible and keep the rate as low as possible.

Thanks for your help! I am located in California.

Philipp