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Updated about 7 years ago on . Most recent reply

cash/6 months Refi mortgage, paying closing cost twice?
My strategy has been buy foreclosed properties that need work pay cash for them (using HELOC on personal home). Put in sweat equity to fix them up and I rent/maintain them myself. In 6 months I get a cash out 30 year mortgage for 80% appraised value. So far the houses have appraised well where I was able to get all my money back and pay off my HELOC. Now I have an investment property where I have none of my own money involved in. Even if I can do this and put under 10% of personal money into it at the end it still beats putting down 20% on investment property. I have done this 3 times so far.
Doing this method I am basically paying closing cost twice (once on original cash purchase, and again in 6 months when I refi). Is there anyway to delay or not have to pay all the closing costs twice? (recording fees, etc....)
Thanks