Lynchburg, Virginia. Two two-story houses a block apart, one built in 1906 and one in 1890. A repeat operator bought both on May 22, and we funded both loans that day. Both have since been paid off by refinance, the first on day 80 and the second on day 138.
The Two Loans
- The 1906 house, 1,550 square feet. Bought for $165,000. Our loan was $124,000: 75% of the purchase and 65% of the $191,000 after-repair value. He put $41,000 down and paid for the renovation himself. A refinance into a long-term rental loan paid it off on August 10, day 80. We wrote that one up in August: Case Study: A $124,000 BRRRR in Lynchburg with $700 in Total Lender Fees.
- The 1890 house, 1,606 square feet. Bought for $140,000. Our loan was $100,000: 71% of the purchase and 67% of the $150,000 value on our file. He put $40,000 down. He made three monthly payments, July through September, none late. A refinance paid it off on October 7, day 138, 46 days before the loan was due.
The Timeline
- Friday, May 22. Both purchases closed and we funded both loans.
- July 1, August 1, September 1. Monthly interest payments on the second house, none late.
- Monday, August 10. The first house paid off by refinance, day 80.
- Wednesday, October 7. The second house paid off by refinance, day 138.
- Sunday, November 22. The date both loans were due.
What the Loans Cost
Both were six-month loans, interest only, paid monthly. Neither carried origination points. Each had one fee, a $700 document charge.
Across the two houses:
- $224,000 lent against $305,000 of purchases, 73% of the combined price.
- $81,000 of his own cash in at closing.
- $1,400 in lender fees for both loans together.
- Both paid off before they were due: the first 104 days early, the second 46 days early.
Why Each House Had Its Own Loan
Each house had its own loan and its own deed of trust. That is why the first house could refinance in August without waiting on the second, and why the second kept its full six-month term after the first was gone.
When two houses share one loan, the payoff of the first usually runs through a release price, and the loan stays open until the last house is out. That structure works for some deals. For two houses on separate refinance timelines, two loans kept each one simple.
Why the Six-Month Term Mattered
Same operator, same street, same closing day, same plan, and the two refinances still closed 58 days apart.
A refinance runs on the new lender's schedule: their appraisal, their underwriting, their seasoning rules. Some long-term lenders will not use the new appraised value until the borrower has owned the house for a set period. We covered how that works in BRRRR Refinance Seasoning: When the Appraisal Counts.
A term built around the first house's 80 days would not have covered the second house's 138. The six-month term covered both, with 46 days to spare on the slower one.
On the Record
Both loans are on our public list of every loan we have funded, with the amount, the city, the property type, the term and whether it is active or paid off. Never a name or a street. See the full book at /funded-deals.
If you are buying a house you plan to refinance into a long-term rental loan, send us the address, the purchase price, your renovation plan and the refinance lender you have in mind through Discuss My Deal. We will size the loan and the term to the refinance.