Newly created LLC's using the BRRR
Happy Pre-Thanksgiving to everyone! Lots to be thankful for!
I am under contract with a property I am buying subject to existing mortgage and also giving the seller a promissory note for $10k over 5 years. My plan is to fix it up, rent it out, and refi once tenants are in and house is fixed up. I need to recoup most of my $35k rehab expense thru a cash out refi. The property is being bought for $100k and ARV is around $200k. Current mortgage bal is $90k, 4%, with 23 yrs left, which is a great mortgage to have, but with the rehab needed, I was hoping to recoup those funds in a refi, even if I have to give a point or two on the rate.
I am concerned that a bank may not refi to an "LLC", or either give me a horrible terms. Before reaching out to banks, I knew BP community would probably have more unbiased knowledge & experience to share than any bank I reach out to.
I greatly appreciate everyone's time and thoughts!
All the Best!
Alan