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Updated about 7 years ago on . Most recent reply

User Stats

30
Posts
4
Votes
Kevin McDonald
  • Investor
  • Lusby, MD
4
Votes |
30
Posts

cash/6 months Refi mortgage, paying closing cost twice?

Kevin McDonald
  • Investor
  • Lusby, MD
Posted

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

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