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Updated over 6 years ago on . Most recent reply

User Stats

179
Posts
42
Votes
Kevin D.
  • Investor
  • Wilkes-Barre, PA
42
Votes |
179
Posts

Finance or buy cash?

Kevin D.
  • Investor
  • Wilkes-Barre, PA
Posted

I'm looking at my second property and am meeting with my realtor on Friday to write an offer.  It's a duplex and I'm going to offer $30k.  I walked through with my contractor and he foresees $25-30k capex to get the property to be a quality property.  

My question is should I finance the property and pay cash for the improvements and then try to refi again after its finished and rented? Or should I just skip the step, and buy it with cash and pay for the upgrades and then do a cash out refinance at the end to take out 80% of the ARV equity? I figured that I would save $ in bank fees doing it the second way.

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