Updated almost 6 years ago on . Most recent reply
Cash out refi question
Hello everyone. I hope everyone who's reading this is all well. I have some concerns to share with you guys.
I am a first time BRRRR investor living in NYC.
I purchased a single family rental in South Jersey, and its rehab is almost finished.
I have a question in regards to cash out refi. In typical fashion of BRRRR, I tried to get the property refinanced at 75% ARV. The problem is, ARV is about 82k-90k(purchase price was 45k, all in cash. This ARV is based on RE agent's opinion and comps), which not many lender would do cash out refi for. I realized the bare minimum that they think is worth for work is about 100k. But I managed to find the local mortgage lender who was going to do it at pricey cost and interest. I was going to go for it anyway, to stick to BRRRR strategy. Without refinance, what's the point, right? But the mortgage lender closed the program recently due to Coronavirus. Now, I feel like I am stuck. But I am not panicking or anything, but just trying to look for other creative way to get through this. Would you sell it if you were in my shoe? How can I keep going? I really want to do buy and hold rather than flipping or anything. What I hope to do is to learn how to repeat investing with the initial capital. I'd greatly appreciate all of knowledgeable advices and information. Stay safe everyone.
if anyone knows NJ lender who does cash out for under 100k, with just one month owndership, Please let me know!
Hoyoon