All Forum Posts by: Caryn Zallnick

@Jean H. That is great to know!! Thank you so much for your input. I definitely want to get ready to do this within the next year. I want that financial freedom but I also just think it would be fun!

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Originally posted by @Brian Dickerson:

Originally posted by @Caryn Zallnick:

Originally posted by @Brian Dickerson:

On the BRRRR's we've done, all with conventional 75% LTV cash out refis, the lender did not ask for projected income. Six month seasoning and they will lend it based on the appraised value. If you're getting up higher in the # of conventional mortgages you have maybe that's when it would matter more. If they needed it, I imagine you could just use projections as if it were a LTR.

Did you refinance from hard money? What do you mean by six month seasoning?

I guess that would make sense because it's not a requirement to have a tenant in place in order for them to fund the loan correct?

So an ideal BRRRR gets you all or most of your initial money (purchase + rehab costs) back through the cash out refi. In order to get the cash out refi to give you 75% loan to value on the appraised value AFTER you have rehabbed the property, conventional lenders usually require you to 'season' (wait) 6 months since the initial purchase. There are ways around that through delayed financing & including the rehab costs on the HUD statement but that's more involved; or commercial lenders also don't all require that 6mo seasoning either.

The way you bought the property initially (cash/hard money etc) doesn't matter, but yes the refi pays that off. In my experience, conventional lenders don't require a tenant in place to finance / cash out refi an investment property.

Okay that's all very good information! If I were to go with hard money then I suppose I would just have to account for the cost of interest when doing my analysis in order to let it season for 6 months. That might be a good route to go to at least get the first few. Thank you so much for your input! :)

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Originally posted by @Brian Dickerson:

Did you refinance from hard money? What do you mean by six month seasoning?

I guess that would make sense because it's not a requirement to have a tenant in place in order for them to fund the loan correct?

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Originally posted by @Matt Silverstone:

@Caryn Zallnick open an LLC to rent the unit as a LTR and have the LLC (which you would still own) run the operations of the STR. It's like you rent to yourself for benefits on both ends: refi with a stable tenant for the lender Long term and higher revenues with STR.

So kind of like rental arbitrage but I'd technically be renting it from myself. Do you think a bank would go for that? Sounds like something they would be cautious of.

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@Jeffery Wilen that's what I was thinking that it might be way more difficult. I'm just trying to think of a way to get the upfront money for purchase and rehab the way you can with a BRRRR.

Thank you!

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@Sean McDonnell I will check that out thank you!

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I am just curious if anyone thinks that the BRRRR strategy would work with Air BnB? I know that to refinance into a bank loan you would need to show projected income on the property. Would this work similar with a short term rental like Air BnB? Any help is appreciated!

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I’ve recently learned that Idaho is one of the states that has script laws about this. There are very very few lenders that allow this for Idaho

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@Matt Singley

Thank you! I knew I’d have to research it more but was just curious if anyone had been successful with it. Might be a good plan for places that have big businesses moving into a town and bringing lots of people

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Does anyone know about hard money lending and using your own construction company to do the rehabbing? I have heard that a lot of hard money lenders will not let you use your own company to do the rehab even if it’s all licensed. Does anyone know a way around that or possible lenders that do allow it?

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All Forum Posts by: Caryn Zallnick

Caryn Zallnick has started 5 posts and replied 25 times.

Post: Can you use Brrrr to finance Air BnB?

Post: Can you use Brrrr to finance Air BnB?

Post: Can you use Brrrr to finance Air BnB?

Post: Can you use Brrrr to finance Air BnB?

Post: Can you use Brrrr to finance Air BnB?

Post: Can you use Brrrr to finance Air BnB?

Post: Can you use Brrrr to finance Air BnB?

Post: Hard money and construction company

Post: Does anyone have experience with corporate housing?

Post: Hard money and construction company