All Forum Posts by: Hyeseong Park

 ok, so you have a few options:

1. delayed financing will let you use the new improved value but only allow you to take out what you paid for the property plus closing costs or 75% loan to value which ever is lower. This is often fine because the spread is not usually as big as yours but this would limit you to 59k plus costs here.

2. A double close.  The 12 month conventional seasoning is for cash out only, NOT rate/term. so what we do is give you a cash out loan at 75% in the form of a short term bridge loan out of our own pocket, our money our rules. We then turn around and refi you using the same appraisal and these are no issues because it is a rate/term refi. Gets your cash out and your long term financing with NO pre-payment penalty in place. 

3. A DCSR option with 6 months seasoning. The down side here is that you will almost assuredly have a pre-payment penalty. This can be VERY expensive when the bond market is signaling that we are possibly at the high point of rates. So, if they do come down in a few years the fact that it will be costly to refi is a serious factor to consider.   

Yes, as far as I know your loan can be ready to go, just needs to close/ fund the day after the minimum seasoning requirement.

My data may be outdated.   Maybe @Chris Mason has a sec to verify.

You've done extremely well.   I know it's painful,  but if you can sit tight for it to season it will save you soo much money and pain refinancing again later. 

Put a great renter in there and wait.  I think you will regret a quick sale.  Taxes are brutal and you will lose an important block in your wealth building foundation.  

 Yes, generally you will want to have the tenants in place. On occasion, the lender can go off market rents. but expect a little conservatism. But again, seems like your property has plenty of spread and will easily conform to the debt service coverage ratio at $1,300/Month. 

On DSCR you will see a rate increase or "penalty" if the property hasn't been seasoned for at least 90 days. Some lenders even require more.

Also - on a DSCR, you will need to have a tenant in place.

I don't believe you're going to find someone who will cash-out refinance you to LTV on whatever the AMC comes back at. Most will do the PP + Repair that you sunk into it, although looks like you have a pretty healthy spread so won't be capped by LTV.

If you are not desperate for the cash right this second, lease it out - wait until it's seasoned and than you will get better rates and cash out of it. 

Hi Hyeseong, 

I would look at some DSCR lenders. There are some that work with the BRRRR strategy and can do cash outs between 3-6 months while basing leverage off the new appraised value. You will typically need a good credit score and there will be LTV restrictions.

 Can we put some numbers on it? It will make the examples a bit easier. If so, what price did you pay for the property?  And what do you think it is worth today? assume single family?