Myth-busting DSCR Loans: Do You Really Have to Wait 6 Months to Refi?

[Bridget Brick]

A question I hear all the time from investors is: “Don’t I have to wait 6 months before I can refinance a BRRRR property and pull my money back out?”

Here’s the truth ⬇️

🔑 With DSCR lending experts focused on BRRRR, there’s no seasoning requirement for cash-out refinances. That means once your renovation is complete and the new appraised value supports it, you can refinance right away — you don’t have to let your cash sit for half a year.

Why does that matter? Because in a BRRRR strategy, speed is everything. Let's say you buy a property for $150K, put $50K into renovations, and your new appraised value comes in at $300K. With the right DSCR lender, you could refinance up to 80% of the ARV, that's $240K which means you’re able to pull your initial investment of $200K back out, and keep the remaining tax free to roll into the next project. 💸 Having an expert who focuses on investor's needs is key to turning over your money and projects faster.

I'm curious — for those of you who are actively using the BRRRR strategy, have you run into issues with low appraisals or seasoning requirements slowing you down? How have you navigated that?

This is for educational purposes only.

[Sultan Ali]

Great breakdown, Bridget. The seasoning requirement is definitely one of those things that trips up newer investors. I've seen some lenders waive it on DSCR loans if the rehab is complete and the new value is well supported, while others still want to see six months of ownership. From what I've learned, it really comes down to knowing your lender's guidelines up front and building that relationship early. Low appraisals can also be a hurdle, I've found it helps to document the rehab thoroughly (before/after photos, itemized scope of work, permits, etc.) so the appraiser has a clear picture of the improvements. It's encouraging to hear more lenders are getting flexible, since speed is such a big piece of the BRRRR model.