Can't find $55,000 Cash Out Refinance in Cleveland

[Joe Sullivan]

I am about to make  a cash offer on a duplex in Cleveland.  I would like to follow the BRRRR strategy, get my money out of the deal and subsequently purchase another investment property.  I've tried quite a few lenders - mostly private and been told the loan amount is too small for the market.

The purchase price is $32,000.  The property needs $31,500 worth of work.  I'll be all in for $63,500.  The ARV will be $80,000.  Each unit will rent for $650. Once I've improved the value of the property, I'd like to cash-out refinance 75% - 80% of the value.   I've had trouble finding a lender who will do the deal.  Lenders are telling me minimum loan amounts in Cleveland (and areas like Detroit) are in the range of $100,000.  

I'd like a longer term loan.  I'm not sure one or two years seasoning on a short-term loan is going to change the situation.

I have enough cash to do 2 deals like this before needing to cash-out refi, but I haven't been able to find a portfolio loan that would work either.  

Any ideas?

BTW, Private lenders have asked about my experience.  I've flipped 3 mobile homes, but only 1 in my name.  The other 2 in the name of a partner.  I flipped a home 14 years ago.