Cash-Out Refi

[Cameron Ellis]

I'm interested in purchasing my first rental property cash, doing the rehab then doing a cash out refi as quickly as possible. I overheard a realtor saying the guidelines are getting very tight on this method, I'm wanting to see if it's still possible to do.

I'm purchasing a home for 13k putting 7k in it, I see the homes in the area are selling for 64k, and my mentor has 2 on the street that appraised for $67,000. I'm just looking to get out what I put in and do it again.

[Albert Bui]

Hi Cameron I've worked on a lot of these with investors.

In the context of conventional lending if you purchased the property with all cash you ca. Cash out up to 70% of market value immediately up to the total cost you paid on the final HUD settlement statement whichever is less in under 6 months.

Option number two you can wait 12 months and you can cash out up to 80% using market value which means you'll be able to take out all of your money in the property and the some with out tax as long as you have not sold the property. Under 12 months we have to use the lower of appraised value or purchase price/acquisition cost.

Option 3 you can search for local banks and portfolio lenders who may have more make sense guidelines in the local area.

Let me know of that helps or if you have additional questions.