Refinancing on Primary using a VA " Refi " ??

[Michael Dunn]

Hi,

I was talking with a Lender this week, and they mentioned that I could use a VA Loan to do a 100% refinance on the Equity in my Primary Residence ( even with me only owning my Primary for right at 6 months now )

I was told that I could get 100% refinancing of the Equity

This is Excellent news, as I am Trying to buy an Investment Property , and may have to pay out of my own pocket for the Repairs ( likely going to cost in the $25,000 - $30,000 range )  +  the DownPayment of 15% - 20% ( depending on which of the Two Lenders I end up using ) .

With having $40,000 in Equity, this would really help me out in getting this property, and being able to pay for the repairs ( I'll finance the Two Closing costs .... the Initial purchase of the properties Closing Costs, as well as the Closing Costs for when I refi. on the Investment Property, aka the BRRRR method :) )

Purchase Price  of proprrty + the two Closing costs = $50,000 

Repairs =  $30,000 ( assuming it all comes in on the high side )

assume 20% down on $50,000 loan = $10,000

MY All-In cost = $35,000

ARV should come in around $110,000 ( using recent sales of properties in same neighborhood )

Lender told me they'll do a LTV for the refi. on Investment Properties of 75% ...... 75% LTV x $110,000 ARV = $82,500

$82,500 - $50,000 =  $32,500 to use as DownPayment / pay in cash for the repairs on the Next Investment/rental property 

The $40,000 from the refi. on the Primary, will likely increase my current note bt around $180 - $200 a month . I'm aware of this .  But I have a Mother-in-law wing on m property that I have a tenant in , and his rent will almost cover my entire mortgage payment ( even with the added $180 - $200 from doing the refi. on the Primary )

Anyways, just wanted to break down the numbers and my plan of action, and get others thoughts and opinions , and seeing if anyone else has gotten/used a 100% of the Equity from doing a refi. on their Primary using a VA loan ?

Thanks so much, really appreciate all the help and advice