Cash out refinance - BRRR

4 Replies

We are nearing completion of our first rehab on what will be a rental property.  We paid cash for the transaction and financed the reno with cash.  Now, we need to cash-out so we can do it again!  We are in Columbus, Ohio and we're looking for recommendations on banks/lenders to check out for this type of mortgage product.  We need a 30 year fixed loan and can leave 25% down.  Any suggestions?  I have gotten conflicting information regarding this process.  Some people told us that we must wait a 6-month seasoning period.  Others say 4 months.  Still others say that since we paid cash there is NO seasoning period.  Any insight on that?

No seasoning period. If you've only paid 70% or less what it APPRAISES for (straight away), then you can get ALL your cash back, up to the full purchase price, using the "Delayed Financing Exception":- https://www.fanniemae.com/content/guide/selling/b2...

Quote: "Borrowers who purchased the subject property within the past six months"..."The new loan amount can be no more than the actual documented amount of the borrower's initial investment in purchasing the property plus the financing of closing costs, prepaid fees, and points"... All the best!

Anna,

I know a lender that will do cash out refinance at 15% down after 6 months.  If you are interested, message me and I will give you his contact information.   This lender also has his own rentals in another state therefore he was able to relate to my goals as an investor plus provide additional advice.  Message me if you would like his information.  

Surely the "refinance" should have NO requirement for a(nother) deposit? (Because, there should already be sufficient equity from wise buying). Otherwise, it's not a BRRRR candidate!...

Brent you are correct, the equity in the house could be used for down payment.  I also miss spoke on the percent, it is 25% down/equity after 6 months not 15%.  The lender I spoke about offers a 15% conventional loan product that is where I got the 15% from.  

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