BRRRR, "Not so fast" cash out refinance
Closing on a SFR BRRRR next week and coming to some realizations not previously considered. This is definitely a rookie learning experience in which I will be taking detailed notes. Lender says that the commercial loan product I am using will convert from interest only to P&I at the end of rehab and there really is no cashout refi option for at least a year? She says I COULD quit claim from the LLC to my name and back and do a 30 yr in the process but the cashout would hit my credit like income? The house appraised much better than anticipated so on a 75/25 cashout refi I would be able to cover purchase and expenses and walk away with a nice bit of money to pump back into marketing etc. Thinking that I may have to wait on the refi and cashout has me rethinking my strategy and also everything I thought about BRRRR. My strategy is long term buy and hold but with the appraisal we received it only makes sense to take equity now if possible. Advice greatly appreciated.