BRRR requirements 1

[James Sargent]

Is the refinancing for a BRRR (in order to get approved) based on personal finances and taxes or the asset? I know I was denied a HELOC before even though I had 300k in equity for my personal property, due to filing personal and business together. I made a mistake of selling a buy and hold due to not knowing the requirements of refinancing the income property after personal money and hard money was tied up. I would appreciate the feedback

[Stephanie P.]

Quote from @James Sargent:

Is the refinancing for a BRRR (in order to get approved) based on personal finances and taxes or the asset? I know I was denied a HELOC before even though I had 300k in equity for my personal property, due to filing personal and business together. I made a mistake of selling a buy and hold due to not knowing the requirements of refinancing the income property after personal money and hard money was tied up. I would appreciate the feedback

The Fannie/Freddie guideline for refinancing and using the new appraised value is 6 months seasoning. That means you have to wait 6 months before you can refinance if you want cash out. If you just want to get your purchase price back out (minus 75%) you can refinance right away. Some lenders can do 3 months using a DSCR loan, but in my opinion (and I'm a DSCR broker) you should exhaust all of your conventional financing before you start to dabble in DSCR. The money is cheaper and the terms are better.

Stephanie