Do I have to wait 6 months to refinance my BRRRR

2 Replies

We have purchased our first BRRRR duplex, renovated, rented, and now are refinancing. The lender I am working with said that I need to own the property for 6 months before refinancing. We purchased the property with cash and are looking to get a 30 year fixed loan. Are commercial loans available sooner than this? I would like to refinance right away and while I’m not far from the 6 month point, I would like to know if anyone has been able to get a 30-year fixed loan before owning a property for that long? What is the reason for this 6 month wait?

Not sure. I work with four banks. Three want seasoning of six months and one wanted a year. I could have taken my purchase / rehab proposal to the bank for a 30 year with a construction loan on the front side and conversion on the back. You are right. By the time I got the rehab done, rental in place, and started shopping again, the six months came around quickly. 

I don't know about commercial loans, but some hard money lenders offer products that allow a flipper to refinance  or do a cash out without all the red tape and seasoning. These might be terms of only a couple years but interest only payments. Rates will be more than conventional but less than a short term rehab loan. This allows you to pull some money out immediately so you don't miss opportunities  then you can refinance later down the road with a conventional lender.