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Private Lending & Conventional Mortgage Advice

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Joseph Sangimino
  • Investor
  • Pittsburgh, PA
13
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42
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WHEN is the RIGHT time to refinance a BRRRR?

Joseph Sangimino
  • Investor
  • Pittsburgh, PA
Posted Jun 4 2017, 09:13

I bought a SFR last October to BRRRR and have a question about refinancing. I bought the property for 55k, put 17k into it, and it's now rented for 1200. It appraised for 78k when I bought it and I believe the ARV is 100k (being very conservative) - but that's AFTER it's completely renovated. I just did a nuts and bolts rehab to bring the property to a clean functional working condition as a rental - without any bells and whistles. To really get a great appraisal, I wanted to stain the kitchen cabinets, put in a tile backsplash, put on a new garage door for curb appeal, and potentially paint the house. I'm very anxious to refinance to reinvest that capital, but if wait a year or so, i can use the cash flow for the renovations.

Should I refinance now and reinvest, or should I complete the aesthetic work first and then refinance? Recommendations?

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