How soon can you cash out Refi

[Stephen Wiater]

Hello all,

I am looking into a property in Florida with my father that seems to be a very good deal, due to, it is not listed on the MLS, it is a elderly man who became close friends with my father and he mentioned that he wants to sell his house within a few months and my father let him know that him and I would be interested in buying it if its at the right price. The elderly man said that he would be willing to sell for about 150K.

Comps in that neighborhood are about 225k but this house is older and dated and definitely needs to be updated which we are figuring will cost about 20k.

So my question is, if we bought for 150k and put 20k into the property to make a total of 170k, would the 225-170=55k left over be our equity that we can cash out to refi? and if so how soon can you typically do this? is their a waiting period or can you do it right away after the work is done?

we will be using a traditional 20% down payment conventional loan.

Thanks in advance for any info.

Steve