DSCR vs Cash Out Refi

[Allan Yeung]

For BRRR, after a property is renovated, they can approach a lender to do a cash out refi. Does the lender evaluate based on ARV? or Purchase Price + Repair cost only? Also is there any restriction like time period (at least x months after initiate purchase)? Would this be considered as DSCR product? Any help is appreciated.

[Raymond J. Rodrigues]

@Allan Yeung I was just in San Francisco for a few months and loved being there. If seeking conventional financing, you cannot do a cash out refinance based on ARV until 12 months of ownership. There are other loan types that allow for 3-6 months seasoning of ownership with slightly higher rates. If the lender states that there is no seasoning requirements to refinance based on ARV, the rates will generally be a bit higher.