When to Refinance on my BRRRR?

[Jobee Vincent Buenaventura]

Hey everyone! New investor here in Bergen County NJ and I got a quick BRRRR question: When is the right time to do a cash-out refinance on a property?

Details: I bought a 2-family with 1 tenant on the 1st unit in September. I did some repairs and moderate renovations for the second unit and it’s currently vacant. Should I refinance before or after I get the second tenant?

And Anyone know of any good banks or lenders in my area that are familiar with these sort of things? Thanks all!

[Jason Shackleton]

Hey @Jobee Vincent Buenaventura You are likely better to have the property fully tenanted prior to your appraisal and refinance. Having signed leases will help with the appraisal process. The rents will not then be estimated they will be current and accurate. That being said before letting the tenant into the building have professional pictures taken of your renovated unit. Being vacant is actually a good thing as you can now stage to take these pictuures. Get your realtor to pull comps for you too. Put these three thinigs Comps, professional pictures and a copy of signed leases into a package for your appraiser. Essentially doing his job for him. There is no guarantee he will accept it however this will give you the best chance of a max appraisal for a refi. If it's a rental I could help with a refi. I deal with private investor loans with a little higher interest rates.

Best of Luck!