Refinancing with the BRRRR strategy

[M T Naughton]

I bought a house cash.  I will be paying for rehab out of pocket. Before I begin rehab, I want to have a lender in place to refi before beginning rehab.  Now I am shopping lenders, and I am having a hard time finding a lender who will give me a mortgage against the appraised value.  The closest I got is 80% of purchase price and rehab costs.  They want to see my money in...  Has anyone had this issue?  Can someone provide me some advice on how to get his refi done?  Am I putting cart before the horse, and just wait to shop for mortgages after rehab is done?  Will they still want to just give me 80% of purchase price and rehab costs?  Why would I need a mortgage if I own the property outright?  Please advise me on how to proceed.  I'm at a loss right now... Any advice would be appreciated.  thank you

[Brent Coombs]

Clint, in your scenario, even with a valuation of $75k, isn't the maximum allowable under the Delayed Financing Exception restricted to: "no more than the actual documented amount of the borrower's initial investment in purchasing the property plus the financing of closing costs"...? (per Fannie Mae's website).

ie. In this scenario, $23k plus closing costs, right?  

I reckon, take your time with the renovations, and wait for the 6 month re-evaluation.  Remember, Real Estate is not about getting rich quick!  Cheers...