Buing home cash, rehabbing. Will bank fully mortgage after rehab?

[Jane WIlcox]

I am buying a home cash for roughly 90,000.00 cash. After closing costs and rehab I will have 115,000.00 into the property and the property will be worth roughly 135,000.00. At that point I will rent it out. How long before I can get a mortgage on the property and how much will the bank usually mortgage on the property after appraisal since it is not a primary residence?

[David Dachtera]

@Jane WIlcox,

That may not fly without some assistance. 80% LTV would be around $108K. So, you'd be behind the 8-ball by $7K if the appraisal comes in at $135K.

If that's ok with you, go for it.

Ideally, you want to be into a property for no more than about 65% ARV, all-in. In your case, that would be $87,750, meaning you'd want to buy at no more than $62,750 if your repair estimate is accurate.