BRRRR - Refinance Question

[Abbas Raza]

Hello fellow investors. I'm working on my first BRRRR property. I purchased a duplex in Ohio from a wholesaler for $60k and I'm putting about $23k into the rehab. We expect the property to appraise around $110k. I spoke to my bank about the refinance and they said they could do delayed financing on the home and cash out 70% of the appraised value...which would be about $77k. At this rate, the duplex would cost me about $6k out of pocket, which I was ok with.

Half way through the loan process, the bank is now telling me that they can only finance 70% of the purchase price (which was $60k). I can do a HELOC for the equity I have built by adding value to the home. I don't love this because the HELOC isn't really my money. I would much rather have cashed out $77k, as I was told initially.

Generally, is this how others have done their cash out refinancing?  Or should I speak to another lender?  Have others been able to cash out 70% of the APPRAISED value, not the PURCHASE PRICE?  If so, how do you recommend I go about doing the same?  TIA.

[Lindsey Mahoney]

@Craig H.@Rick Turman@Garlin Smith I currently live in Denver but am originally from Toledo and have been looking into making investments in the Toledo and Columbus area.  Would love to sync up with all of you to talk strategies!