buying a property cash and refinancing

[Joe Walton]

Hi, my wife and I are new to real estate investing and have decided that we are going to take the buy and hold rental property route. we live in Rochester MN and the market is pretty high right now. We were discussing how to find a good deal and we thought about something that I haven't read about but was curious if anyone else has done this. We thought if we could find a property that was under duress such as behind on mortgage lets say, could we offer cash for the property to make for a quick sale and then refinance with the bank to get our cash back. It is similar to the BRRRR I know but it would be without the rehab portion or minimum rehab. Just find a good deal buy with cash and refinance. Is this a strategy that anyone has used before?

[Jason D.]

@Joe Walton it's a very common strategy called delayed financing. Many topics on this forum about it. Its exactly what you are attempting. You can refinance under delayed financing without the seasoning requirement of a traditional cash-out refinance. There are limitations to how much you can get back, but it's a viable option.