Traditional funding seasoning timeframes to refinance a hard money Buy-an-Hold purchase?

[Chris Koeppel]

Hi all,

Situation: Evaluating a contracted $70k (ARV $120k) 3/2/2 SFR for a Buy-an-Hold rental at 1100/month, and with hard money lending at 15% (6 month term). With this temporary funding it is going to be break-even or -$190/month (considering CAPEX, vacancy etc.) cashflow until a refinance at lower rate.

CAP rate is 11%, 1.47% (2% rule), $3k in repairs, using above numbers. Alternative exit strategies are flipping, and lease-to-own depending on refinancing outcome. In Florida.

Questions: How long do I have to season the deal to be able to get a traditional lending refinance?   Would any of you think it possible and advantageous to getting additional cash out at this initial refinance from a traditional funder for another REI downpayment or purchase?

Is the initial cost of using HM Lenders such as above deal typical or is this too financially risky for many of you?