cash out refi??...need some help

[Craig Montesano]

Hi everyone

I could some help...I am a little confused.

I am looking into a SFH that is in a great area but needs about $15K to $20K in work. I can get house at 12K cash. Once fixed up I should be able to get $650 to $700 a month in rent.

Ive done a little research on the cash out refinancing technique but it just isnt clicking for me...all my other homes have been bought with conventional mortgages and cash.

For this one I would use my HELOC for purchase and rehab....

How do I pull cash out once it is rehabbed....

Thanks so much

Craig

[Matt Devincenzo]

Everything that Kyle J. said is right on.

As far as who will do a less than 50K I've found that most local banks will do it in areas that have lower home prices. In FL where I invest I called 3 or 4 local banks and asked and everyone of them had no problem with doing less than 50K because they're used to seeing those home prices, but every big bank/online lender has the 50-70K minimum because the costs for them are too high for anything less than that. It may be different in your area but I'll bet if homes sell for that price range there is someone willing to lend on it.

I'm doing a cash-out refi right now on a property and there is really no difference from a traditional purchase the process is essentially the same just instead of sending a check to the home seller they are sending it to you.