Immediate Cash out Refinance

[Kyle Keller]

I'm wondering if anyone has any experience doing an immediate cash out refinance? I have seen online that MOST lenders require a 6 month waiting period before a cash out refinance is allowed.

Has anyone done a cash out refinance immediately after purchase of a property?

How did you do that?

What kind of lender was it?

[Jaron Walling]

@Kyle Keller You can and it's called Delayed Financing. It's not technically a cash-out refinance though. There are pros and cons to the strategy but long story short you can't pull more than the original purchase price. It has to be purchased with cash. A lot of investors simply wait 6 months, rehab the property, and pull more equity. 

If you're aiming for buy and hold deals it can be smart move freeing up cash to fund the next deal. For a flip or house hack it doesn't make much sense.