Using conventional mortgage as purchase loan on BRRR?

2 Replies

I saw a post yesterday where a guy used a conventional loan to do the purchase half and refi half of the BRRRR strategy. I'm wondering the pros and cons of this vs using private/hard money loans?

For cons I can only think of the time it takes to close a conventional, maybe the impact to your credit score? 

I'm getting ready to make offers on some potential deals and want to see if I should go the conventional route for both parts also. 

Thoughts? 

Originally posted by @Donald S. :

I saw a post yesterday where a guy used a conventional loan to do the purchase half and refi half of the BRRRR strategy. I'm wondering the pros and cons of this vs using private/hard money loans?

For cons I can only think of the time it takes to close a conventional, maybe the impact to your credit score? 

I'm getting ready to make offers on some potential deals and want to see if I should go the conventional route for both parts also. 

Thoughts? 

 Assuming the value-add is there, the big downside to this route is only that you have to wait six months from closing on the purchase to do the cash out refinance. 

Chris Mason, Lender in CA (#1220177) and California (#1220177)
415-846-9211

Well if that's the only downside ill have to start getting qualified, because the 2 banks I've found in StL so far require 6 Mon seasoning regardless of what the first loan was, unless it was straight cash. 

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