BRRRR without the Renovation?

[Sammie Baker]

I'm buying my grandmother's home from her for $170k. The market value is $225k. If I get a mortgage and put 20% down ($34k) can I do a cash out refinance immediately after?? I'd like to apply the cash to another property...

Thoughts on this?? I appreciate it!

[Chris Wharton]

@Sammie Baker - if you're using conventional financing (FNMA/FHLMC) you are required to have a 6mo seasoning period between acquisition date (deed) and the new note date (closing). So the best bet to pull equity would be to apply in the 5th month and close the day after you reach 6mo. I have several Non-QM outlets that follow this same guidance.

Hope this helps.