How fast can you get a cash out refi after renovations?

[John Smith]

If I paid all cash for a property plus its rehab costs and was able to complete all of the renovations within 2 months, increasing its ARV by 25% in the process, how soon after the renovations were complete would I be able to take the cash out of the property and refinance? This would be my first deal and I have a credit score in the 740-750 range and zero debt.

[Jim S.]

You could refinance immediately if you wanted it based on the original sales price. Otherwise if you want conventional financing that is based on the new appraised value it is 6 months.

If it's your first deal I would not expect the rehab to take only 2 months unless you already have a team in place or it's just a cosmetic rehab in which case 25% will be difficult unless you bought it off-market.