Construction loan vs DSCR refi

[Adam Copley]

I am nearing the final ~2 weeks of completing my first BRRRR. I took a hard money with a construction loan allowance which I have not drawn from yet.

Which is the preferred path. Draw from the construction loan to recoup the cash before refinancing, do a cash out DSCR refi directly after I get a lease signed? Keep in mind that the property is not currently leased and will likely not be rented for another month.

[Drew Sygit]

Quote from @Adam Copley:

I am nearing the final ~2 weeks of completing my first BRRRR. I took a hard money with a construction loan allowance which I have not drawn from yet.

Which is the preferred path. Draw from the construction loan to recoup the cash before refinancing, do a cash out DSCR refi directly after I get a lease signed? Keep in mind that the property is not currently leased and will likely not be rented for another month.

What happens if your do NOT do the last draw and then want to take out the cash during the refinance?

Your refinance may then be considered a cashout refi instead of a rate & term refi with a higher rate.