BRRR without buying cash

[Rigo V.]

is it possible to do BRRR without having to buy the property cash?

If I finance a house for a really really good deal and do a minor rehab, and it appraises higher is there a reason a bank wouldn't do a refinance at the higher ARV?

Am I right in thinking I just need to find the right deal and the right lender to allow me to refinance hopefully with a 6 month seasoning? 

[Stephanie P.]

@Rigo V.

Just because a bank is local, doesn't mean they don't follow Fannie Mae and Freddie Mac guidelines.  @Jason Hirko was trying to explain to you that you can get a loan, but you won't be able to get cash out for 6 months based on the new appraised value.  That is called "seasoning".  Those are the regular, everyday guidelines and if your bank, local or otherwise, sells your mortgage loan to Fannie Mae or Freddie Mac or some other entity that will eventually sell that loan to one of them, they will have to follow those specific guidelines.  I don't even want to get into delayed financing because it won't work in your situation.

There are other lenders, generally not banks, that will lend with no seasoning or less than the 6 months, but the rate and terms are going to be higher than conventional financing.  If you can live with that, then that's the type of loan you should go for.  They get done all day, every day.

Hope that clarifies things for you.

Stephanie