Question on BRRRR Refinancing and seasoning

[Timothy Holden]

Apologies in advance if this is a stupid question. The BRRRR method references getting money to buy the property initially either through cash or hard money, then rehabbing, renting, and refinancing. When I researched refinancing I find requirements for 6 months of seasoning before you can do a cash out refinance. How does the BRRRR method sidestep that or is it normally a 6 month waiting period?

[Aaron W.]

@Timothy Holden You should never feel like you are asking a "stupid" question.  All questions are welcome. This is one of the ways we all learn is by asking questions.

The 6 month seasoning period is very common. One way way to sidestep this requirement is to purchase the property in cash and financing after your rehab, but there may be caveats to this method of delayed financing. For example, you may only be able to refinance out 75% of your appraised value or 100% of what you paid as listed on your HUD, whichever is LOWER.

Best of luck!