How to Refinance a BRRR

Question

So I hear about folks using the BRRR method, and listening to the podcast its made to sound like its just easy peasy to refinance at the end of the BRRR, get the cash out and move on.  But how do you go about getting your refinancing done easily/cheaply?

Ive got about 75% equity in a rental and I feel like im having to jump through hoops to do a refinance, and its not even a cash out (doesnt seem like many want to do cash out on invesment property).  Whats the trick to pulling the equity out without habing to go through the major paperwork shuffle, credit pulls, DTI assessments, getting crap for being a 1099, etc?

Appreciate any input

Joe

Nicholas Lohr · Answer

The loan process is part of it.  I know it sucks and seems ridiculous but you have to do it. I literally had to get a note from my mother for one of my refi loans. I'm 37 years old!

Joe Crupi · Answer

Yea, Alan, the 1099 seemed to be somewhat of an issue..   I think I got another bank interested in doing it for me after reassessing my DTI (which is stupid low), but just a bunch of fees.  I think they estimated over $3k

Alan Lacey · Answer

If you are going with a conventional Fannie/Freddie loan they all underwrite to same guidelines just a matter of price and not screwing up. If you are 1099 and writing off a lot of your income or have less than a 2 year history it is going to be tough. Otherwise refinancing a rental no different than anything else. If you do have still issues ther are a few companies offering DSCR loans on residential. Angel oak is the one that comes to mind.

Joe Crupi · Answer

@Brendon Seeley

Thanks!  I was shopping at two credit unions, but have a call with an independent guy soon.

Joe Crupi · Answer

@Nicholas Lohr. Hahaha

Brendon Seeley · Answer

@Joe Crupi Just the nature of the beast. Not sure if you are working with a bank. Personally, I would shop around for independent mortgage lenders and work with them since, in my experience, they tend to be quicker and a little bit more flexible on their lending. Many big box banks have strict lending requirements, not all bad but check out your options.

How to Refinance a BRRR

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