Looking for Cash Out ReFi Advice

[Greg Satter]

Hi BiggerPockets Forum! In August I pulled the trigger on my first deal using a HELOC. I am looking to refinance prior to the six-month mark so I can pull my cash out and do another deal. Are there ways to do that? I am new to real estate. I live and plan to invest in the Kansas City area. Thanks in advance!!

[Pete M.]

@Greg Satter Welcome to BP. If using conventional loans, then you're stuck with waiting the six months until you can cash-out refi. There are inventive ways of getting around this, but you have to plan those out from the start (including putting your rehab costs on the HUD-1 at closing, or using private/HML to put a mortgage against the property). I should say that you can cash-out sooner, but you're restricted to using the value you purchased the property at, not a new ARV.

You could also explore finding a local bank for a portfolio loan; since these are non-conforming loans they keep on their own books, they make the rules entirely... including how long you have to wait for seasoning.  Rates and fees will tend to be higher than with a conventional conforming loan, though.