Cash Out Refi on a BRRRR Struggles

[Garrett Terrell]

Hey everyone!

Looking for help/advice. I'm in the middle of a rehab process right now on one of my BRRRR's. The total rehab timeline will be about 3-4 weeks after closing on it.

I already have a renter lined up and I will be cash flowing about $400 roughly after PITI on a 75% LTV cash out refi.

Now my question is, how quickly can I get it refi’d? I’ve heard there is a “seasoning period” but I’ve also heard you can get around that.

Also are there lenders that can go up to 80% LTV on a cash out refi?

I’d prefer to not eat the hard money loan for 6 months or longer so I’m just trying to get my capital back as quickly as possible and move onto the next project. Any help is greatly appreciated thank you so much!

[Scott Ashworth]

Call around to various banks. I use a portfolio lender here in NC that has 0 seasoning period and allows for a 80% LTV. Make sure the bank you are working with does LTV (loan to value) and not LTC (loan to cost). Since you are BRRRRing here, you've created value, so the LTV should be higher than the LTC.

Every bank is different, but oftentimes it is the smaller, community banks that offer the most flexible terms.