Investment Property Refinance Help

[Adrienne Long]

Hi group!

I'm looking for some guidance here. I purchased my first BRRRR project in January with a hard money loan. I've been waiting the 6 months seasoning period to refinance out of that and into a bank loan. I bought the property for $85k with hard money. Spent $40k in repairs. It's currently rented.

After doing some research I’ve realized there are retail lenders and conventional lenders-rather than just conventional for refinance. Because I didn’t consider this, I’m hoping to gain some knowledge/ thoughts on which direction is best on a cash out refinance? It seems like the amortized loan would be more of a headache.

Retail: 80% LTV // 5yr maturity // Amortized over 20yrs.

Conventional: 30 yrs // 70-75% LTV

Thanks so much for any input!

[Ashley Wynn]

I personally would go with the conventional route because it increases my monthly cash flow. For the commercial loan, you would have to refinance every 5 years which you would be responsible for paying for the appraisal and any other costs associated with the new loan. This option isn't bad if your strategy isn't to buy and hold long term.