Cash out refinance question

[Bernard Sanga]

Let's say you buy a property from MLS cheap enough to BRRRR and get your money out. Property condition was good enough so you used a conventional loan for the purchase, then paid cash for the rehab.

Is there gonna be a problem if you try to cash out refinance just after 6months of initial purchase? I am looking for any lender restrictions that I might not know of. I know most people use private or hard money so I wanted to know if using conventional loans for acquisitions make a difference in the BRRRR process.

Thank you!

[Whitney Hutten]

@Bernard Sanga In theory that works (I've done that). Talk to a conventional lender now to understand if they will finance the final project. Many get stuck buying a $30K house, put $30K into, ARV is say $75K and the bank won't do it because the loan value is too low. Also, know that rates can move on you too!