Understanding benefits of Cash Out Refi for downpayment on another property

[Danny McGreevy]

Hi BP Fam!

I purchased a property recently with 20% down.  If I end up needing more capital for another rental property, I may wish that I put 10% down so that I can have more capital available for another downpayment.

In this event, are there benefits to cash out refi + downpayment on my next property, i.e. only one total of closing costs since only using one lender for a new total transaction, or will there still be closing costs on each mortgage?  

I am trying to understand if that extra 10% that I put into my property is going to be efficient to take out to put towards another property, or if is it going to be expensive now that I've already locked it up in that house and I'd be better off seeing if I can pull the capital from elsewhere.

Thank you as always

[Devin Peterson]

If you just purchased a property, and you are seeking conventional lending options fannie freddie make you wait 12 months before you can cash out. DSCR is a little different, most lenders run with a 6 month seasoning requirement, a few go by the 3 month rule. All in all, you will have closing costs tied to each loan no matter what. The size of the down payment does not matter. Hope that helps, good luck!