Fannie Mae

Fannie Mae is the government-sponsored enterprise that buys conventional mortgages from lenders and sets the guidelines those loans must meet. Its rules govern conventional cash-out refinances on investment property, including the seasoning requirement that a borrower own the property for six months before refinancing on appraised value.

Seasoning is the rule that sets the BRRRR timeline. A conventional refinance before six months is based on purchase price, not the new appraisal, which defeats the purpose. So the hold is at least six months from the deed date, and hard money interest accrues for all of it.

Fannie Mae guidelines also cap conventional cash-out on investment property at 75% LTV for single-family and lower for two to four units, limit a borrower to ten financed properties, and require personal income qualification. DSCR and portfolio lenders are not bound by these rules, which is why investors past the conventional limits or in a hurry refinance with them instead.

Further reading: Fannie Mae on Wikipedia.