How do I buy in cash and convert to a conventional loan?

[Brant Richardson]

I am seeing better opportunities for cash buyers and I actually have enough cash to do a deal. However, it would take most of my cash. I have no properties at this point so I would like to take advantage of the low rates of traditional financing and buy 4 properties leveraged rather than own one outright. Is it possible to buy in cash, do the necessary renovations and then convert to a normal 30 year fixed at the same rate as if I bought the property with financing in the first place?

[Dawn Anastasi]

When you get a mortgage AFTER renovating the property, it's called a "cash out refinance". However many lenders will only do this with a "seasoning" period. This period is usually 12 months, but can be 6 months as well. Different banks, especially portfolio lenders, have different requirements/guidelines.