Updated almost 4 years ago on . Most recent reply
DSCR to Cash Out BRRR
Hi,
Purchasing a buy and hold property in the Hamptons, NY for $1,895,000. Will put $500K in property. ARV is $3M conservatively, with a really great reno can fetch up to $3.5M. Purchase contract has no mortgage contingency and needs to close in 60 days, so decided to do a DSCR with no prepayment penalty to cash out after repairs. Was told I cannot do cash out DSCR refi because I will have no rental income yet and I've held the property for about 6 months while doing the reno.
Any suggestions on which loan I should look at for at least a 75% LTV cash out refi. BTW: I'm self employed.
Most Popular Reply
@Calvin Quallis - If you need financing for the initial purchase and rehab (not using your own cash) then a short term hard money rehab/bridge loan is what you'll need. A long term dscr rental loan won't work. The lender won't do that type of loan on a property you plan to rehab. You do the rehab first, then do a long term take out loan once the rehab is done and you have cashflow (or soon will). You need a good broker to find loan programs for you.