Pay "cash" and then refi, or seek mortgage up front?

[Cassie Wright, Jr.]

I'm aiming to purchase my first small multi-family in Ohio; probably in the $50k-$80k price range.

Is it better to pay "cash" and then refi, or seek a mortgage up front?

I say "cash" in quotes because it will come from my HELOC (primary residence). I'd like to have my money available (or 75% of it, at least) ASAP after my purchase.

I'm sure the answer to this question will include "it depends" ... I welcome any advice and clarifying questions!

Thanks!

-Cass

[David M.]

@Cassie Wright, Jr.

Sort of depends... The market is still relatively hot so you may need a cash offer to get the offer accepted. Yes, with mortgage rates there is a risk that you may not get as cheap as a loan, but you may miss on the deal entirely if your offer is with financing. Try looking into delayed financing. Conforming loans allow you to take out a loan within 6 months of closing with a LTV based on the purchase price of the property. So, this doesn't work well if you are reno'ing and planning to have some force appreciation.

Otherwise, it sounds like your plan is "mostly" the same price since you aren't getting two loans...

Make sense?  Good luck.