Refinancing

6 Replies

You can refinance as soon as you would like! That said, most banks will still prefer you to have 20% of equity (minus closing costs) after the cash out refinance takes place. Keep that in mind. 

Dorlyn, 

I’m not sure your situation, but for me it’s generally better to do a refi when I’m getting at least 1% or more in savings or if I have a hard money loan that I want to replace with a conventional mortage. Hope that helps. 

Does anyone have experience trying to cashout refinance a BRRRR property in under 6 months, when there is a hard money lien against the property? Our first real investment property (not previous homes converted to rentals) was on track for the perfect BRRRR that would have under 4k of our money in it, and cashflows a little over 400 per month. However, with rehab complete, renters moving in at the end of the week, we hear back from our mortgage broker that the Fannie Mae guidelines require the house to be held for 6 months if there is a lien on the property (e.g. our hard money loan). So now we are looking at having to wait another 4 months to cash out and redeploy our funds into our next investment.

Is this the experience that everyone else is having when doing a BRRRR using hard money? I've not heard about this roadblock from Brandon and David, but perhaps I missed this small but crucial detail.

Is there any way to get around this Fannie Mae guideline?

Jill and Rich

Does anyone have experience trying to cashout refinance a BRRRR property in under 6 months, when there is a hard money lien against the property? Our first real investment property (not previous homes converted to rentals) was on track for the perfect BRRRR that would have under 4k of our money in it, and cashflows a little over 400 per month. However, with rehab complete, renters moving in at the end of the week, we hear back from our mortgage broker that the Fannie Mae guidelines require the house to be held for 6 months if there is a lien on the property (e.g. our hard money loan). So now we are looking at having to wait another 4 months to cash out and redeploy our funds into our next investment.

Is this the experience that everyone else is having when doing a BRRRR using hard money? I've not heard about this roadblock from Brandon and David, but perhaps I missed this small but crucial detail.

Is there any way to get around this Fannie Mae guideline?

Jill and Rich