Conventional loan Brrrr

[John Knight]

Hi. What are the downsides to using a conventional loan to purchase a property I want to brrrr? I know the refinance has its costs but if it is a great deal should I still go for it? It is my first investment property and I want to stay away from HML right now. I also will not be house hacking.

Thanks 

[Nick D.]

@John Knight, I just closed on a refi for my first BRRRR. If the numbers work I see no downside. I bought the property with 20% down saving on PMI but more importantly it allowed me to waive the appraisal. I completed a ground up renovation over the next 3 months, got the place rented in month 4 and got all my money including the 20% down back out in the refi. Only down side is you pay closing twice (First mortgage and then 6 months later on the refi) but if the numbers work then the numbers work. If you have the cash you may want to look into delayed financing. Saves you on closing and there is no seasoning period.