All Forum Posts by: Troy Smith

It's going to depend on the lender, how it's titled and what kind of refinance you are doing.

If you're doing a conventional cash out refinance, a lot of lenders are going to require a 3 to 6 month seasoning period prior to refinancing and it will have to be rented first. If you're doing a rate and term refinance, there's typically not a seasoning period but again it's common for lenders to require it be rented first.

If you're doing a DSCR cash out refi, it may not need to be rented first but you're probably paying a higher rate.

Your best option is to call a loan broker you trust and go through the options based on your current situation. There's no reason to wait, call them now so that you understand the options.

Hey Troy, 

Congrats on finishing your rehab. Document all improvements with before/after photos and receipts, highlight upgrades that add value (kitchen, baths, etc.), and research comps in your area to ensure your property aligns. If possible, meet the appraiser to provide your rehab details and comps.

Also, out of curiosity, when did you purchase the property and when are you looking to refinance? 

@Troy Smith If this is your first BRRRR deal I'd meet the appraiser, shake hands, and provide a paperwork describing all the renovations you completed. I usually provide our budget as well with totals spent. It's a great way to showcase the improvements made and helps appraisers not miss stuff. A lot of investors provide comps (residential RE) but I avoid doing it because it's like telling them how to do there job. Hopefully you bought right in an area with comps so they can them. That's the tricky part part about investing in rural areas. 

It's such an exciting part of the process! Best of luck. 

@Troy Smith - if you buy a new primary home its 5% down for a conventional loan or maybe FHA works as well with 3.5% down. You can leave your old home loan alone. You can do this every year if you want, its a great strategy to buy homes with minimal down!!

You must occupy the new home for at least 1 year.