Advice on multifamily purchase

[Dashon Jones]

I have a 3 family home on contract right now for 120k and the gross rent is 3k. From the comps I have looked at, I think the house should appraise for at least 170k. I want to know if there are banks that will be willing to do a cash out refi right at closing so that I can get my down payment money back. Also, if the house does not appraise for what I am thinking, is there anything I can do to get a higher appraised value immediately?

[John Horner]

Most big banks require 1 year seasoning before they will refi using the appraised value. Prior to 1 year they will only use the most recent purchase price, meaning you would still have to keep 20% in until 1 year.

I have heard that some smaller banks will reduce this to 6 months, but I have not found one yet...