Need help with BRRR in Los Angeles, California

9 Replies

Hi Everyone, 

I bought a distressed property for cash in Desert Hot Springs (Riverside County). I'm in the process of fixing it up. I would like to refi and get my money back (BRRR).

1. Do I need to have a renter for 6 month before I can get a loan?

2. Does anyone have recommendations for a lender that can do a non conventional loan?

3. Does the loan get calculated based on my personal income or the property income?

Please help, any information is greatly appreciated.


@Marina Flu   There are options for both loans based on personal income, and loans based on the property income, but using just property income will have a higher interest rate.  No need to have a tenant in place for 6 months before applying.  If you have a lease in place and can document that the property has been vacant for repairs, that should be sufficient to count 75% of the lease income.

Way to go with jumping in on the purchase. I'd recommend dedicating at least a couple hours to reading up on the BRRR strategy before you start.... don't want to run into surprises on the refinance.

Ideally you'll qualify with your personal income for the loan, using a conventional fixed rate loan, so you should already be talking to a lender to make sure you're ready to qualify.

@Marina Flu , since you paid cash for the property, ask some local lenders about delayed refinancing programs.  No need to wait 6 months.  This can be a conventional loan, so I would suggest that you with conventional lenders for better rates and terms.  The loan will be primarily calculated on your personal income with some specific amount (maybe 75%) of your property income added to that.

I flipped and managed 100 houses in DHS, I miss that ****hole.  Call Kerry Gelbard at LA Mortgage.  Or message me for his contact.

I am a standard RE agent in LA now, but I still have a soft spot for DHS.   I have worked with Kerry, he's excellent.  If he can't help you he'll find someone who can.   Tell him Amy referred you. 

@Marina Flu ...

Don't know if you found what you're looking for, but no, you don't have to have it rented for 6 months, or even own the property for 6 months to get a loan on it.

2. have some recommendations, but you should pm me if you haven't found what you're looking for.

3. There are a lot of loan programs that are solely based on the property income, so if the rent is solid and market rent is solid (taken into consideration), then you should easily be able to get a loan

Thank you.