All Forum Posts by: Romie Graham

With new seasonal period of 12 months for cash out refi on brrrr , only option is a dscr loan for around 7.5% at 6 months, my question is that if the property is paid off with no mortgage, do I still have to wait a year to cash out refi with a bank or can i do it at 6 months

@Chris Kendrick Did you pay cash for the property?

Yes paid cash for a property

@Chris Kendrick Then you can still do a conventional loan using delayed financing right now. Assuming a single family home the constraints for delayed financing is you can borrow up to what you paid for the property plus closing costs/pre-paids up to 75% loan to value. So, if you paid 100k, and the appraisal is 150k with 5k in closing costs/pre-paids you could borrow 105k max. This is under 75% of 112,500. If the appraisal was 125k, you could only borrow 93,750.

Lets say the appraisal was much higher like at 200k. At that point it might make sense to utilize a strategy we use all the time which is to get a bridge loan for your cash out to take away the delayed financing restrictions. In that case we would lend you 150k pulling the cash out up to 75% of the appraisal. We would then refi you into a conventional loan right away using the same appraisal. This gets you around the delayed financing restriction AND the new 12 month seasoning requirement because seasoning ONLY applies to cash out loans. In this case the conventional loan is NOT cash out.

So doing brrrr method, i cant get my rehab cost back? So i paid cash for property at 120k, rehab cost 40k, all in for 160k and appraisal came in at 220k, how can i can get all my money back with delayed finance

You can only get what you paid for the property plus closing costs/pre-paids on delayed financing. So, in your case you could borrow/get back 120k plus closing costs with delayed financing. So you cannot get the 40k in rehab costs back using conventional delayed financing.

But, you could do the second option I mentioned above. using a 220k appraised value we would potentially do a short term bridge loan with no pre-payment penalty at 165k, giving you the cash back. Then turn around to refi into a 30 year fixed conventional loan with no pre-payment penalty right away using the same appraisal. So, you have your cash back out with no seasoning requirement AND the long term fixed rate.

@Jay Hurst I am in the same situation, thank you for breaking it down I love the bridge loan option. Wish you lend in Ohio.

0 Votes

After two years of consuming myself with real estate through books, podcasts, and anyone willing to talk real estate, I finally closed on my first rental property today. I'm both nervous and excited at the same time, but looking forward to the journey. I can genuinely say it wouldn't have happened without BiggerPockets and the community, and for that, I say thank you all.

4 Votes

@Will Fraser thank you for taking the time to explain your point of view, I love the idea of using OPM and refinancing to pay them back later.

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@Esta Ryder thank you for your feedback, I plan to hold as a rental. I was leaning towards getting a mortgage but wanted some feedback. Again thank you for your advice it’s greatly appreciated.

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Hey everyone!

Currently under contract for a SFR that will be an investment property (first investment property)

For those that have some experience I’d appreciate some advice!

Purchase price is $60k light to medium rehab thinking $20k max, ARV is between $105k-$120k. I have a HELOC that can cover the $60k and a private lender to cover the rehab. Is that a good route to take or should I get a mortgage at 7% and use the HELOC for the down payment and rehab.

Any advice would be helpful thank you in advance.

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I've bee getting a lot of No's lately for the same reason over and over, my debt to income ratio. Any advise on the best way to get over that hurdle? The only thing I have is my primary home and student loans. Any advice would be helpful.

Thank you

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@John Teachout I was shocked as well but those are the numbers from the county website.

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@Greg Scott more so wondering if the tax would ever go away since it's so high and we all know it's not getting paid anytime soon. Will the county just hold it forever? I'm pretty sure the tax is more than the house itself.

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All Forum Posts by: Romie Graham

Romie Graham has started 6 posts and replied 18 times.

Post: No seasoning periods for cash out Refi

Post: Cash Out Refinance on Full Cash Purchases

Post: Cash out refi

Post: The first one is always the hardest.

Post: Under Contract HELOC or Mortgage

Post: Under Contract HELOC or Mortgage

Post: Under Contract HELOC or Mortgage

Post: How to get around the DTI

Post: Should I proceed or pass

Post: Should I proceed or pass

Romie Graham has started 6 posts and replied 18 times.

Biggerpockets Logo Post: No seasoning periods for cash out Refi

Biggerpockets Logo Post: Cash Out Refinance on Full Cash Purchases

Biggerpockets Logo Post: Cash out refi

Biggerpockets Logo Post: The first one is always the hardest.

Biggerpockets Logo Post: Under Contract HELOC or Mortgage

Biggerpockets Logo Post: Under Contract HELOC or Mortgage

Biggerpockets Logo Post: Under Contract HELOC or Mortgage

Biggerpockets Logo Post: How to get around the DTI

Biggerpockets Logo Post: Should I proceed or pass

Biggerpockets Logo Post: Should I proceed or pass

Post: No seasoning periods for cash out Refi

Post: Cash Out Refinance on Full Cash Purchases

Post: Cash out refi

Post: The first one is always the hardest.

Post: Under Contract HELOC or Mortgage

Post: Under Contract HELOC or Mortgage

Post: Under Contract HELOC or Mortgage

Post: How to get around the DTI

Post: Should I proceed or pass

Post: Should I proceed or pass