Bradenton, Florida rental: Advice for drawing equity out

[Brian Moseley]

Hi all, I am asking for you experienced investors out there to offer your suggestions (and advice), on some lenders who offer the best options for drawing out equity in our rental in Bradenton, Fl. We inherited the property and have begun construction. The old home is being replaced with a new, elevated home. Our current (and new) mortgage balance is $225k. We need an additional $60k to bring the home up to "Vacation Rental level", i.e. swimming pool, furnishing, landscaping, decorating. The appraised value (completed) of the property for the existing loan is $335k and an updated appraisal is expected to be $20k - $30k higher with the recent reports in local property values. 

The plan is to get a 6 month to a year monthly lease on the property, to cover the debt to income ratio, and then either attempt a cash out refinance or an equity line of credit. We would need a loan that includes the rental income in the equation. My concern is that I may not find a lender that will loan the required LTV amount, to provide what we need on a cash out refi.

My questions for those "in the know" are:

1. Any suggestions on the best lenders / banks / funding in the area on investment properties?

2. Do I need a lease in hand prior to applying for funding or do they use an estimated monthly rental amount. My P.M. is anticipating approximately $250 / month profit over our costs on the monthly rent. Once it goes to a Short term rental, the profit will be much higher.

3. Does anyone have any "out of the box" financing solutions for this type of scenario, that have been successful for you personally?

4. Anyone have any advice on pitfalls to avoid from personal experience in this scenario?