Refinancing a BRRRR out of hard money
Refinancing out of our hard money for our first BRRRR project.
We have about $225K into the deal and ARV is $280K
Credit score is 665 which is what makes this hard and we are trying to do a no doc loan for ease and because my husband who is the sole owner of the LLC is employed by my real estate company and I only pay him "fun money". Terms are as follows: 6.5% interest with pre payment penalties for the first 60 months.Will lend 75% LTV. $10K in closing costs which seems super high.
Market rent is about $1900-2200 and PI would be $1243, PITI will likely be about $1450 so the cash flow still looks good.
What makes me nervous is the pre payment penalty. I don't want to get stuck at a 6.5% interest for 5 years if rates dip.
Any expert BRRRRers out there with insight for us?