Rehab and refi under 75% of ARV

[Gary Gallo]

I am having a difficult time getting offers accepted that would allow me to purchase and rehab rental homes for under 75% ARV. Previously, I bought houses cash, fixed them up, and then did a cash out refi after seasoning. I have not been able to do this and get all of my rehab money back out due to the amount invested being more than 75% ARV. All of my offers that would have kept the purchase (and the rehab) under this percentage have been rejected. Ideally, I would not have to leave any of my own money in these homes as that would limit the amount of properties that I could acquire.

What has been others experience regarding this? Have you been able to get offers accepted that would fit these perameters? Have you found banks that would finance higher than 75%? If not, how are you financing your deals?

I guess in short- is it realistic to keep plugging away with offers that would allow me to get all of my cash back out or should I resign myself to the fact that I will have to have additional funding for these homes.

[George P.]

i personally dont think that increasing the EMD is going to do much.

Gary, are you working with your own real estate agent or you contact the seller's agent directly? You might want to try that. read the "highest and best" thread. lol