One lender for both halves of the BRRRR: a fix & flip loan for up to 92.5% of the purchase and 100% of the rehab, then a 30-year DSCR cash-out refinance with no income documents. Run your numbers below.
Fix & flip loan funds up to 92.5% of a below-market purchase.
100% of the rehab budget is held back and paid in draws.
Place a tenant; the lease (or market rent) sizes the refinance.
DSCR cash-out at up to 75% of the new value pays off the rehab loan.
Use the cash you pulled out for the next property.
Buy a property below value, Rehab it, Rent it, Refinance into a long-term loan based on the new value, and Repeat with the cash you pull out. Done well, most or all of your down payment and rehab money comes back at the refinance.
Two: a short-term fix & flip (rehab) loan to buy and renovate, then a 30-year DSCR rental loan to refinance once it's rented. We do both, so the refinance is planned from day one.
DSCR cash-out refinances go up to 75% of the appraised value. After 6 months of ownership the new value is used in full; between 3 and 6 months, cash-out is limited to your cost basis.
No. DSCR loans qualify on the property's rent versus its monthly payment (principal, interest, taxes, insurance and HOA), not your tax returns. A ratio of 1.0 or higher is ideal.
None for the rental loan. The rehab loan's leverage grows with your experience: up to 90% of cost for new investors and up to 92.5–99% for experienced ones, capped at 75% of ARV.
680+ for the rehab loan and 660+ for the DSCR refinance.
Next step: price the rehab loan, then apply for the DSCR refinance. Building new to rent? See ground-up construction loans.
Estimates only. The refinance estimate assumes a 30-year fully amortizing DSCR loan at the rate you enter, 75% of ARV after 6 months of ownership, and the closing cost percentage shown. All loans are business-purpose loans for investment property, subject to underwriting, appraisal and approval.
#BRRRR #BRRRRMethod #BuyAndHold #RentalProperty #RealEstateInvesting #DSCR · Share on X · Facebook · LinkedIn · Email
