Best way to cash out Refi a BRRRR

[Nolan M.]

Here's my situation. I'm planning on trying out the BRRRR method to acquire my next rental. I'll be buying the house in my name (no LLC) and I'll be using a HELOC from my primary residence.

Am I correct in assuming my two options are to wait the 6 months and get a conventional cash out refi mortgage, or to find a portfolio lender who can refi before 6 months, but the interest rate will be a little higher? What has been your experience?

[Michael Pearse]

@Nolan M. Using a small bank is your best option. You are more likely to find local banks allowing you to cash out refi before 6 months. As long as you calculate positive cash flow with the higher interest rate, I would recommend choosing this option. You will be able to refinance sooner if and when needed.

Best of luck!