hey Bigger Pockets! just got my 1st BRRR and I was wondering how long you have to typically wait to re-finance it to a regular mortgage? also, what kind of rates do have you been getting with the cash-out refinance?
Cincinnati, OH · Member since 2020 · 4k+ posts · 3k+ votes
5y
@Jordan Hiebert, I would start calling lenders and finding out. Typically seasoning is 6-12 months. My lender is 12 months, but some are 6. Do you own personally, and plan to take a personal mortgage? Do you own in LLC and need to take commercial mortgage? Rates will vary depending on each. And like anything, some will be lower with higher fees, some will be higher with lower fees. Particularly if owned in LLC and commercial loans, rates and terms can be all over the board, since these are held by the lender, not sold to Fannie/freddie.
thanks for the quick reply! good questions, currently its in my name and my wife, but I guess I need to call around to see if I should get an LLC or keep it as is for the time being and maybe change it in future as i get more properties.
Lender · Fort Worth, TX · Member since 2021 · 15 posts · 4 votes
5y
Hey @Jordan Hiebert Congratulations! I would say an LLC is definitely the way to go for your rental investments. If that's the way your leaning I may have some good options for you if you're interested.