Cash Out Refi -BRRR

[Zak Parks]

Hey BP. I currently have a triplex under contract in upstate South Carolina for about 75% of what I think it's worth. My plan is to pay cash for this property and then do a cash out refinance on it because I think it may appraise higher. So basically I'd be pulling out all of my initial cash invested with a refi, aka using BRRRR without the rehab. Would you do things differently? After speaking with lenders, it seems I'd have to wait 6 months before refinancing the property. Are there lenders that exist that don't make you wait 6 months to refinance like Fannie Mae requires? Comps on the property are tough to find so I am also concerned about the appraisal being too low. Would income be a factor? Thanks for your help BP! -Zak

[Troy Gandee]

There are a lot of lenders that will do this without the "seasoning" period. Most of them are specifically investment property lenders (Dwell, Colony, Lima One, etc.) Lima One is actually in Greenville. I would talk to them. These products are fantastic, but the interest rate is usually quite a bit higher than what FNMA or Freddie Mac can provide, but they will not require much seasoning if any. Some of them only need 60 days. You will also have to pay some closing costs and origination fees, but they should just be a few thousand.