cash-out on first rental

[Amir K.]

Hi all,

a few days ago i sign my first lease on my first rental

A little background,1 bedroom unit in a top Chicago neighborhood. beat down unit purchased for 140K cash, I did a gut rehab almost all by myself and was able to get the place looking amazing for the reasonable price of about 25K.

all in all with closing and carrying costs I'm 170K in

annual expenses: $8250, annual income: (with 5% vacancy) $22250. cap rate a little over 8%, not bad...

however, im looking into my next one and i cant let a substantial chunk of my money sitting there.

i spoke with my mortgage broker and he said that i can cash-out refi any time i want. but, as long as its under 6 months from purchase date, the bank will only appraise it for the purchase price, 140K. if i want to get it apprised for ARV of say 180K and pull more money out, i have to wait for those 6 months to pass.

anyone had any success by-passing this somehow? any banks that doesn't require to wait? or maybe private mortgage lenders that are a bit more lenient in the Chicago area?

any help would be appreciated

thanks!

[Victor So]

@Michael Barbari may be able to provide some insight.