Refinancing

[Bill Purifoy]

Hello BP,

I'm sort of new to investing and recently purchased my first property. I own the property free and clear (no mortgage). I'm currently renting it out at $750 per month and would like to refinance and take some cash out. I've heard many different stories: 1. I have to wait 6mos to get cash out (apparently there's some sort of seasoning period)? 2. That I can refi but I can only refi for what I paid for it. I paid 29,000 and it appraised at 58,000. I was hoping to get at least 75% or more LTV of the appraised value.

My question: what can I do? Are there any banks out there that will refi without the seasoning?  

I closed about two months ago. 

Thanks,

BPSI

[Arianne L.]

@Bill Purifoy You don't have to wait 6 months to get cash out via a conventional bank loan. If you finance (delayed financing exemption) within 6 months of buying the property with cash, you can take out up to your initial investment (purchase price + closing costs) or 70% of appraised value, whichever is less. If you wait 6 months, you can take out more than your initial investment up to 70% of the appraised value. In your example, you paid $29,000 so you should be able to take at least $29,000 back out. The challenge is that most banks will not loan a small value. If you want to take more than $29,000 out, then you have to wait at least 6 months.

@Jerry Padilla can probably answer this better than me. Try contacting him. He has done all of our delayed financing so far.