Flip vs cash out refi

[Marshall Secord]

Hi BP. I’m currently working on what I always intended to be a flip in Philadelphia, but I’m starting to think more and more about the potential of a cash out refinance so that I can keep the house in the appreciating Brewerytown community. Does anybody know what the requirements are for how quickly I could actually get the cash from a refinance?  I’ve heard that I may need to rent the property out for a few months or even a year before I can refinance. Also, can I cash out the full final appraised value minus what has already been paid for the house, or is there a max percentage of the value I can pull out?  I would love for it to feel like I’m getting paid what I would for a flip and I get to keep the house in exchange for a bigger mortgage. Thanks!

[Jessica Tsao]

@Marshall Secord I did one on one of my rentals so DSCR loans can work, you can cash out refi up to 75% LTV. You can typically close 10 days after appraisal. Using the rental income as qualifying not your income and the loan can go into your LLC. It will not show up on your credit report which I personally like. So it will not affect your DTI when you to use your personal credit lines. But as Joe said, it depends on the numbers and also your goals. Hope this helps.