BRRRR STRATEGY QUESTION (REFINANCE)

[Ben C.]

Hello,

This is a question for those that have already applied the BRRRR strategy….

What does the bank look for in terms of leverage when giving you a 70% LTV with the new higher appraisal price after rehab? Assuming you hold title in an LLC (there will be no assets or income in there besides the property).

You must rent out the units and have positive cash flow before you go and refinance correct? Is there a waiting period or as soon as you have a signed lease can you go and refinance?

Thanks in advance!

[Chris Seveney]

I just tried to refinance my BRRR that I bought in July and my credit union told me I had to wait 6 months (till January)

Not a big deal but just letting people know that there may be a seasoning