Cash out refinance on rehab

[William Crites]

Here is the roadblocks I am finding.

The property I have held for 14 months and is valued at 225K like to do a 75% cash out.

I currently have 3 other rental properties that cash flow at around 1200/mo total.

I do have full time employment.

The issue I am finding is that they only accept 75% of my rental receipts (this seems crazy since I only had a 2% vacancy rate in past 5 years) and they subtract any expense I show on my tax returns as well. They also won't count this fourth properties rental amount because its not on my tax returns because it was just rented this month. They only count what is on a tax returns they won't use a lease and cashed checks. So there is a 1600/mo loss in income. Needless to say my debt to Income ratio is all out of wack using there method.

For after finincing this property I will be cashflowing around $1800/mo or 21.6K per year but they are not interested. This sytem doesn't seem to use logic...how can you say my properties are going to be vacant 3 months out of every year.

Is there a bank in MD that can help with this situation or does anyone have any suggestions.

Bill

[Michael Noto]

@William Crites  What kind of bank are you dealing with?  If you are dealing with a national or even a regional bank that is probably why you are hitting that financing road block.

Have you contacted any banks that are portfolio lenders or in other words banks that hold their own paper?  Typically these banks are small local banks or credit unions that have more flexibility on their lending standards.