Need Advise on Cash-Out Refi for 2 BRRRRs

[Nick Wilson]

Hello BP!

I'm attempting to finish the BRRRR Model on two homes in Indianapolis I purchase in Nov 2019. I rehabed both and both are currently leased. The challenge I've run into is the Cash Out Refi. One has no mortgage, because I paid cash for it, the other has a hard money loan on it. Back in Feb I started working with a Mortgage Broker for the 75% LTV Cash Out Refi. Appraisals were done and everything looked great, the process dragged on for 3 MONTHS, then he said the underwriters couldn't make it work because of new COVID guidelines. I got a referral to a different Mortgage Broker in May, and the exact same thing happened. Appraisals looked great, the process dragged for another 3 months, and I was just told last week the underwriters weren't doing any cash out refis for non-owner occupied property, due to covid guidelines. Pretty frustrating that the brokers didn't know these guidlines and wasted my time and theirs, but I'm moving forward. My Investing Mentor said to look at Bigger Financial Instutions like WF and BoA, becuase they may have more stable guidlines. I heard back from Chase Bank in Indy today and they said 1) they wouldn't do a cash out refi, but they would do a refi if it had an existing mortgage, and 2) They wouldn't do a Refinance with me because I didn't have any chase accounts. I discribed my situation to them, and they said normally they could but again due to covid their guidlines are tighter as well. Any direction would be great, becuase I'd like to buy a couple more by EOY.

Here's the details on each property:

1. Purchase Price: 55K Cash, 9.6K Rehab Costs, Appraised at $85k, Rent: $850/mo

2. Purchase Price: 80.5K, 23k Rehab, Appraised at $110k, Rent: $950/mo

Thanks in advance!!

Nick