SFH BRRRR with personal loan + CC financing

[Stephen Miller]

Hi everyone, I'm Stephen Miller and I'm a newer member to BP. I got my first BRRRR property two months ago (2nd rental first was LC). 4B/2B

I chose to use my high credit score and use a personal loan and 0% interest credit card check offers to fund the deal. Not sure how I will end up refinancing because my credit score went from 780 to 630 because of my high utilization and credit inquiries. Here are the #s:

Purchase: 56,500

Repairs: 36,000

Closing cost: 2300

Prop Taxes: 3300/year

Water est (LL paid): 1200/year

Maintenance est: 1000/year

ARV: 120,000 (conservative imo and could be 140k based on two comps in neighborhood)

Rent: 1200-1500 (1200 conservative)

Let me know if I'm missing #s

I'm using cash from my CCs that had 3-4% balance transfer cost with 0% interest for a year. Personal loan from sofi at 10.6% for 46,000. Then have additional 70k in limits after pulling out 25k in 0% CCs. I'm using 0% CCs for all DIY materials and personal expenses too keep cash for roof and contractors (20k). 

I knew this option would crush my credit score but didn't expect such a huge drop. So I'm curious on your experience with trying to refinance with this. My utilization will be too high if they don't count rental income. And Im working on cutting rehab costs with more DIY for bathrooms to keep risk of lower appraisal down.

Also, I'm willing to call every bank and credit union in the state to make this deal end up with me paying nothing so the BRRRR works as intended. But also think I can skate by for a while with personal loan and cc payments if I get a good rent price. Sacrificing cash flow in the short term.

I've got investors lined up for a 12 unit apartment building downtown and need this to work as a case study as proof.

Any comments and suggestions are greatly appreciated 😀

[Jillian Jones]

@Stephen Miller look for portfolio lenders in your local area. They will require 20% equity to stay in the deal at the very least but they don't care about your DTI. They may consider your property owned free and clear because you don't have a mortgage on it. This is a great position to be in. They care about the value of the property and it's ability to pay its own expenses. Good luck! I've seen others get through this sort of deal as well.