Refi Options in Ohio

[Shawn McCormick]

I recently bought a rental in Ohio. I paid cash $78,000 and put about $35,000 worth of rehab into it, so all in $115k. Looking for best option to cash out refi. I think it would appraise for around $140kI have only owned it since March, so very little rental income. What loan type (DSCR or conv) should I be looking at and what rates?. Hoping to get 80% back out.

[Matthew Crivelli]

Quote from @Shawn McCormick:

I recently bought a rental in Ohio. I paid cash $78,000 and put about $35,000 worth of rehab into it, so all in $115k. Looking for best option to cash out refi. I think it would appraise for around $140kI have only owned it since March, so very little rental income. What loan type (DSCR or conv) should I be looking at and what rates?. Hoping to get 80% back out.

Because you bought with cash most lenders will need you to wait 6 months to preform a cash out refi at your projected ARV. Right now DSCR rates are hovering in the 8% range for high LTV on a 30Y fixed rental loan. 

You could do delayed purchase financing, this would allow you to refi without the seasoning but you would only be able to pull out 80% of what you paid + 80% of your completed rehab. If your all in costs are 115k, the loan amount would be 92k (80% LTC). 

[Robin Simon]

Quote from @Shawn McCormick:

I recently bought a rental in Ohio. I paid cash $78,000 and put about $35,000 worth of rehab into it, so all in $115k. Looking for best option to cash out refi. I think it would appraise for around $140kI have only owned it since March, so very little rental income. What loan type (DSCR or conv) should I be looking at and what rates?. Hoping to get 80% back out.

 80% cash out refinance will be all but impossible (although 75% should be doable)