OK... I am targeting a 4plex for a BRRRR. I have read a LOT... but what I am missing... is how I can avoid 6 month seasoning and double closing costs for a BRRRR. Properties in Ca. are 350k + so I will be fully leveraged... couple grand to close... ouch... then a couple more grand AND waiting 3 months post rehab to refi it... is lame.
What am I missing?
Delayed financing is an option, but you're limited to the lower of 75% LTV or your purchase price with all closing costs. You can start the process the day you close with cash or hard money on the place.
To use an example, lets say you bought a place appraised at 100k for 65k cash and put 10k into it. Your max loan amount would be 65k (plus closing costs).
Only other option is to find a portfolio lender that doesn't have those seasoning requirements. They exist out there, just have to keep looking.
to be honest, most of your rehabs from purchase to bid to completion to tenant arent going to be much LESS than 6 months anyway.... I was just curious... if I STEAL a house off someone... do a bit of work and poof... its worth enough to refi... lame to sit for 4 months.