Real Estate Agent · Aberdeen, MD (21001) · Member since 2019 · 9 posts · 10 votes
BP Community! I'm a newbie based near Baltimore who left his investment finance job to commit to real estate investing/sales full time. I'm most interested in implementing the BRRRR method with HML partners in my farm area to recycle and stretch my saved capital as best as possible, but I'm concerned about the refinance component. Having left my stable desk job, I no longer have W2 income and do not yet have 2 years of sales-related tax returns to help underwrite a conventional cash-out refinance.
Have other investors/agents run into this before, and if so, what options would you explore to overcome this hurdle? Any insights/suggestions would be much appreciated!
Lender · CA · Member since 2015 · 9k+ posts · 10k+ votes
7y
BRRRRrrrr is basically off the table. You can get the refi loan, yes, but the rate will be such that you are no longer cashflowing and the fees will be high too.
More realistically, you can of course flip. Sell it.
Real Estate Agent · Southington, CT · Member since 2008 · 5k+ posts · 3k+ votes
7y
Everyone on this thread has brought up good options for you to explore. Just focus on buying a good deal in a good area so if you end up not being able to or not wanting to refinance you can always sell. Having multiple exit strategies is key in this business.
Real Estate Agent · Aberdeen, MD (21001) · Member since 2019 · 9 posts · 10 votes
7y
@Chris Mason@Brian Garrett@Michael Noto thanks for the input, guys! I appreciate it. I'll look into what the commercial/portfolio loan option looks like, but sounds like I may want to start with a few flips before busting out the BRRR, or find someone to partner with who can underwrite it. Good things to keep in mind as I line up my first deal.