How do you use BRRR w/bank financing?

[Erica Gregory]

I am purchasing a investment property from a family member using bank financing. I plan on implementing BRRR. This will be my very first property but I'm not 100% sure if it makes sense to do it this way. Any advice?

[Chris Mason]

Originally posted by @Erica Gregory:

I am purchasing a investment property from a family member using bank financing. I plan on implementing BRRR. This will be my very first property but I'm not 100% sure if it makes sense to do it this way. Any advice?

 Plan on waiting six months until you can do the cash out refinance. 

Is the property up to minimum conventional lending standards?

Example of yes: old kitchen, everything is obsolete, walls are yellow with stains from cigarette smoke. But everything works.

Example of no, not up to minimum conventional lending standards: Kitchen is fairly new, but someone took out the oven range meaning you can't cook in it, meaning it's not a kitchen, meaning Fannie won't lend on it.