BRRRR - Refinance Timeline for re-appraisal
Question on timeline for a BRRRR. Given the following situation: $100K purchase price, $50K Rehab, $200K ARV, and let's say hard money lender at 90% purchase + 100% of Rehab.
I was talking with a local bank and received the following guidelines:
* For commercial (LLC ownership), they won't re-appraise until I've owned the property for 1 year. Until then the baseline for LTV calculations is the purchase price ($100K), so no ability to refinance out cash
* For residential (my name / fannie mae, freddie mac lending), before 6 months they can re-appraise, but the loan can't be a "cash-out", the max loan amount is the financing basis - so if the title work said the 1st lien was $90K, that is max loan, if $140K then that is the max amount.
* For residential after 6 months then they could do a cash-out refinance up to 75% based on fannie mae / freddie mac guidelines
Are these normal restrictions? My intent was to execute the rehab within 3 months and get out of the private/hard money lending quickly, but that doesn't seem possible given these limitations.