BRRRR - Buy, Rehab, Rent, Refinance, Repeat
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Updated over 3 years ago on . Most recent reply
Is it possible to refi rental investment prop on value only
I have a rental investment property, a 1200 sq. ft, 2 bedroom SFH. It is rented and has been for 10 of the last 11 years. Current rent is $2,600. I just completed the build of a new stick built 600 sq. ft., 2 bedroom ADU in the back. I believe I will receive $2,500 to $2,600 on the back unit. (This is in the SF Bay area, east bay.) I refinanced $350k @5.65%, (while I was working in a traditional job,) meant for paying 84K open loan, to rehab the SFH and build the ADU in 2019. The current mortgage payment is $2043 per month. The appraised value before the ADU $565k in 2019. The cost to build the ADU was $300k labor, materials, fees, architect, inspections, etc. I believe the property would appraise at at least very high $900k if not $1 to 1.2 mil. A house around the corner of the same age rehabbed and an added a fully finished basement second unit sold for $1.2 a few months ago. It's 3 bedrooms each and a 100 total sq ft more.
I have retired. My intention is for the income from the property to be part of my income in retirement.
Is it possible to refinance based on the property income ONLY, without a traditional job income source?
How would I do this? Is there a specific type a named loan or type of lender?
Thanks for any advice.