Refinancing an investment property if it was paid for in cash?

2 Replies

Okay, so I am interested in utilizing the B.R.R.R.R strategy while investing but I have a question that I can't seem to find an answer to. If I pay for the property in whole with cash, renovate it and rent it out can I still refinance that property with the bank? Thank you and don't worry about over explaining, I'm relatively new and could use all the information you have to share!   

Originally posted by @Megan Elise McIlvaine :

Okay, so I am interested in utilizing the B.R.R.R.R strategy while investing but I have a question that I can't seem to find an answer to. If I pay for the property in whole with cash, renovate it and rent it out can I still refinance that property with the bank? Thank you and don't worry about over explaining, I'm relatively new and could use all the information you have to share!   

Yes, but that is considered to be a "cash out" refi, so you have to wait 6 months from the time you take title to do the refi.