Missouri BRRRR - Refinance

5 Replies

Good morning BP,

Trying to complete the second to last "R" (Refinance) of my BRRRR Project, Looking to find a lender that can do 75% - 80% LTV. My 6 month Hard Money loan is coming due at the end of September, I could extend another 3 months but really don't need to. I have both sides of the duplex already rented. Summary of Project:

- Total (Purchase & Rehab) - $61,000

- Estimated Appraised value - $80,000 - $85,000 (New Roof, New Windows, Total remodel on inside)

- Total Rental Income - $1,200/month

Looking to see what lenders are out there that would be interested in refinancing, I have a W-2 job as well.  I appreciate any thoughts/help on lenders that I could reach out to.  

Thank you in advance for any insight or input.

Rodney

@Rodney Buford this sounds like a pretty reasonable request to me.  Lots of lenders should be able to do this but there might be some slight differences.  At minimum, I would suggest to seek out recommendations in the Missouri forum here on BP. There should be some good locals that monitor that state forum and they will most certainly be newer information sources as well. 

I would also recommend asking some general questions when you are interviewing your lenders as some of these might have slight differences between lenders and it sounds like some of them might apply to your scenario:

Questions for Lenders

  1. When do you start using rental income to help me qualify? (the answer needs to be immediately)
  2. When do you start using “After Repair Value” on my property?
  3. How long do you need me to be on title to refinance? (this is important if you do need a short term loan to purchase then refinance out - and the answer should be 1 day...very important that it is 1 day on title is all that is needed to refinance)
  4. What is my minimum down payment required? (if they only require 15% down on a single family home that is usually a good sign that you are working with a flexible lender)
  5. How many loans can I have with you?
  6. Can I change title to my LLC?
  7. Do you sell your mortgages?
  8. What is your loan minimum?
  9. Can you explain to me what your reserve requirements are?

Feel free to hit us back with any other questions.  Thanks!