help finding options for small cash out financing.....

[Alpheus Moore]

Hi everyone!

My name is AJ. I am a rookie. I have recently purchased my first rental property. I purchased the property for around 60k, I put about 7K into the place, and right now my zestimate is saying a value of about 83k. I have had the property for almost 3 month and I have started to reach out to lenders looking for cash out financing. The issue I am starting to run into now is that my par rating (not sure if that is the correct terminology) is coming in at an area where I am having to pay about 7/8k in points. In the end I would be looking at a cash out value in the range of 49-55k with an approx interest rate of 7%. (unless my ARV comes back higher) I don't want to pay so much in points, but unless my value comes in around 100k, I think that I am limited in my lending options. I guess I am unsure if what I am seeing/hearing is okay for my situation, or if I need to be hunting harder for a lender that has better terms. I feel like I am at a bit of a road block on my next step and the fear of the recession makes me really want to check in to see if I am on the right path or to pump my brakes.

Thank you all for taking the time to read this and thank you in advance for anyone offering advise.

[Frederic Babeux]

Why not just try and sell it and get into something a bit bigger with a loan from the start? Seems a good way to scale faster?