How long do you wait to refinance a BRRR?

Question

How long do you wait to refinance?

Recently purchased a fixer upper for $20K - 60 days later it’s now rehabbed and rented out at $700 a month

Would you refinance now or wait a few more months?

Also would you refinance in the Same state as the property or would you refinance with your current bank that is in your primary state?

Reid Chauvin · Answer

Account Closed - I'd probably wait the 6 months and cash-out refi with a conventional loan. A conventional loan will cost the least as far as transaction fees and will have a more advantageous interest rate. It does not really matter whether you refinance with a company in your state or the property's state, the company you use will just have to be licensed in the property's state. A lot of companies have minimum loan amounts they deal in, and you may be somewhere around that threshold, so just make sure to ask what a company's minimum is before you waste time with someone.

Andrew Garcia · Answer

Hi Account Closed, it depends on which type of refinance you are looking to do.

For conventional, you would need to wait 6 months. For DSCR or other non-QM products, you may be able to refinance now. If you want the best rate, wait for conventional. If you want speed, ease, and convenience, go with a DSCR loan now.

Account Closed · Answer

@Reid Chauvin

Awesome thanks! 🤝

Account Closed · Answer

@Andrew Garcia thank you!