Low ARV Refinance (BRRRR)

Low ARV Refinance (BRRRR)

Member since 2022 · 1 post · 0 votes

Had a quick question that hopefully will have an answer to. My wife and I just bought our first 3 rental properties with our cash. They have renters in them currently, but we will go in and make the necessary updates to demand the top dollar of rent in that area which should be $900+ a month. The problem that I am running into is that we will want to cash out refinance these properties (BRRRR) but we are having a hard time finding a lender that will lend on these properties because the ARV on each house will be $70-$85k. I have looked into a lot of DSCR lenders, but they won't lend on them because they aren't worth enough. Is there a different type of lending out there that I haven't come across yet? So, I guess my question is, is it going to be possible to do a cash out refinance on these properties? Thank you!

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  • Stephanie P.Pro Member
    Washington, DC Mortgage Lender/Broker · Member since 2016 · 4k+ posts · 2k+ votes
    3y

    Contact Alan Gore at Lima One.

  • Erik EstradaBusiness Member
    Lender · Member since 2022 · 6k+ posts · 1k+ votes
    3y
    Quote from @Kelsey Harden:

    Had a quick question that hopefully will have an answer to. My wife and I just bought our first 3 rental properties with our cash. They have renters in them currently, but we will go in and make the necessary updates to demand the top dollar of rent in that area which should be $900+ a month. The problem that I am running into is that we will want to cash out refinance these properties (BRRRR) but we are having a hard time finding a lender that will lend on these properties because the ARV on each house will be $70-$85k. I have looked into a lot of DSCR lenders, but they won't lend on them because they aren't worth enough. Is there a different type of lending out there that I haven't come across yet? So, I guess my question is, is it going to be possible to do a cash out refinance on these properties? Thank you!


     If you are looking to refinance at least 2 of them, a blanket loan could work. Minimum loan amount is $50,000 per property

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