For BRRRR, how is credit age affected with repeat refi's...

[Brian Bufalini]

Just finishing up David Greene's excellent book on BRRRR, and the whole idea is to refinance after the rehab when your appraisal will be a lot higher (and hopefully you can pull out all of your cash or more). However, when you get to the final "R" or "Repeat", that means you'll be refinancing over and over again for each new rental you acquire. My question is, how is that going to affect your credit score, since it seems your credit age will start to drop? After 5 or so active refinance loans, I can see this really depleting a score. New credit is 10% of your score and credit age is 15% of your score. I will be just fine starting out, but want to know how to manage this after I refi several times. Thank you!

[Evan Polaski]

@Brian Bufalini, while I can see it having a slightly adverse effect on your score, everything I have heard is mortgages don't effect your credit score like say opening more credit cards does.  Additionally, while you will have more open, you will also presumably be making each payment on time, and in full, so the payment history will be adding to your score.

Lastly, there are only so many mortgages you can get in your personal name, and some people condone that you jump straight to commercial mortgages. When you move over to the commercial side of the business, the loans will be in an LLC, and not showing on your personal credit report or score.