DSCR Cash Out?

[Alleigh Follett]

So if we purchase a house at auction with cash, can we immediately refinance into a DSCR loan to get our cash back out?

[Matthew Crivelli]

@Alleigh Follett

No waiting period for a delayed purchase. The catch is that you will only receive say 75% of what you paid, NOT what the property is worth. Your lender will be using Loan to Cost (LTC) not Loan to Value (LTV). Many lenders will even add in verified rehab into the loan amount. 75% LTC + any rehab you complete. Typically this must be preformed within 90 days of the original purchase.

If you are buying at a major discount and want to cash-out all the equity, you would likely have to wait for a 6 month seasoning period to be over.