In the TK model though, you're underwater day 1 right? 

Keep in mind you'll generally need 20-30 days to refinance! 

Short term will make you more money, but require a lot more management (new tenant every 3 days, turn over, cleaning, etc).  

The last one I dealt with for the past two weeks, is a large corporate cash buyer that just admitted that they need 90-180 days to close on a deal!

The following day I got a small counter back and I accepted.

I just bought 5 properties in 5 days in 3 states. 

However, some investors are fine with this strategy if they prefer to minimize their upfront investment and plan to refinance in a few years, especially with potential interest rate cuts from the Fed this year.At the end of the day, it’s all about investing in a growing market, selecting a solid neighborhood, and building a strong team to support you.

Ensure compliance with 45-day identification and 180-day closing rules.This post does not create a CPA-Client relationship.

DSCR Loans - Both Purchase and Cash Out Loans- Investors typically use these on the cash out portion of the BRRRR Strategy - Minimum Downpayment, usually 20% but some lenders offer 15% down - Max LTV on Refinances, typically 75%, but some lenders will do 80% - Minimum Title seasoning (since the property was purchased and recorded on county records) is 90 days, although some lenders have no seasoning at all as long as you can show rehab work completed. - 30 year fixed terms - Usually have a Prepayment Penalty from 1-5 years, although you can price out a 0 PPP for a higher rate or fee- Minimum Credit score is 650 usually, although you could do a lower LTV loan at 620. 

I just learned all this in the last two days as I’m tearing down a mobile home from the 1960’s.