Refinance step of BRRRR not happening!!!
Upstate SOUTH CAROLINA 12 unit 6 building deal.
I am getting hung up on the refinance step of my first BRRRR.
12 units across 6 buildings.
Purchased for $20,000
$90,000 renovation.
Currently 100% rented.
Rents for $450 a door. $5,400/MTH.
I have only tried 5 banks, but nobody will even look at it.
Above average credit. It’s been full rented for about 5 months.
Not A class for sure, but mechanically sound and is livable for sure. No central heat/air.
Anyone have a clue? I’m close to selling it, but that does not align with my long term goals. Anyone know a bank that does this in the area?
Most Popular Reply
@Chris West what bank(s) have you talked to? @Andrew R. Lucas is asking some great questions.
I have portfolio loans with 8 or 9 banks in South Carolina so here are some questions that they'd probably have:
-How long have you owned it?
-What is the location like?
-Was the purchase price $20,000 or $20,000 per unit?
-What are you looking to do with the re-finance proceeds? In my experience, banks hate doing cash outs. They're much more likely to approve a payoff or re-fi from a 3rd party.
-What is your total loan amount?
Don't let their "No" keep you from continuing to call and ask banks. Ask the reasons behind their rejection. These lessons have been invaluable to my financing experience.