RI multifamily BRRR finance lending process

[Tina Rubin]

I have 1 SFR rental property in CA. My first out of state purchase was a SFR in Feb.2021 in East Providence. I made minor improvements (5k) to get it rented within 30 days of closing (East Providence) and it cash flows for about $700/mo.

I couldn't do the full BRRR at the time because I used all my funds for the 20% down and wasn't comfortable at the time to do hard money lending.

I'd like to invest in multi family's in RI but now wondering the best next steps. 

Initial thought is to complete the "rehab and refinance" part of the BRRRR on the property I already purchased so I can get money out for next investment.

OR

Can I just find another deal and get funding for the next deal just based on that deals calculations? I wasn't comfortable with hard money lending before because I don't know much about the process, just the basics. 

I plan to discuss both with my traditional lender but wondering if anyone can advise who've worked with hard money lenders and/or which route above has proven successful for you. 

Thank you!!

[Anthony Thompson]

@J.R. Coffin as I mentioned before, I'm not an attorney, but what you described does sound excessive.

As a reasonable (non-attorney) person, I would "assume" that, failing to give 3 months notice, you would be responsible for 3 months rent to cover the period you should have given notice for, which could actually be less if the landlord rents it out sooner than 3 months (which, in this rental environment, I honestly think is more likely than not).

There's an additional possible wrinkle that if you originally had a lease from - for example - May 2020 through May 2021 and it wasn't properly renewed into a new 1-year lease, that the lease effectively became a month-to-month rental agreement under the same terms - which would mean you actually did give the required legal notice (one full month for a month-to-month tenancy).

It's complexities like that which make me think you'd be better served consulting an attorney who can give you advice based on the specific details of your lease/situation.