Refinancing on a BRRRR property
I am 18 years old and am looking at buying my first investment property this summer. I am looking at doing the BRRRR method. I have the private money lender and the general contractor handled, but due to me being 18, I
had concerns with the refinance portion. My father has over an 800 credit score, and he said he will sign on as a 1% equity holder with me during the refinance. I went and spoke with a lender yesterday, and I was told that I would not have a problem refinancing as long as my father signed on with me. He said that the credit portion of it was covered, but I could have a problem with the income side of approval. He said to prevent this, I would have the option of them looking only at my rent appraisal on the property, and if it covered my mortgage and expenses, basically making sure it cash flows, (which it would because it all comes in the due diligence of the analysis) that they could bypass the income aspect of approval as well. In return for this, I would be on more of a 7 or 8% interest rate. What are your thoughts on this, do I have other options, etc.? Thank you!