Considering a Refi and Sale of a Flip

[Matthew Anderson]

I picked up a house in Sep. for 577k with an ARV of 800-810k.
I took hard money, note of 522k.
Paid for the down and renovations out of my pocket ~57k+130k. 

Selling will make a little money, but it’s not a ton. The house is great, great location and we remodeled it a little nicer than we originally planned given the strength of the location. 

We’re considering refinancing instead and putting renters in for at least a year. 

I’ve talked to a couple mortgage folks and haven’t gotten any great options yet. 

Anyone doing 80-90% cash out on investment properties? Maybe even IO products?  
Thoughts / Suggestions?

[Jay Hurst]

Quote from @Matthew Anderson:

Quote from @Matthew Crivelli:

Quote from @Matthew Anderson:

Quote from @Matthew Crivelli:

This property is not going to cash flow with a DSCR loan, even at 75% LTV. You should look to sell, no one is doing 90% cash outs.

 It will, depending on the financing, rents are strong in that area.

Let's say you take a mortgage of 600k (75% of your ARV) 
Taxes - 5k Annually 
Insurance 2k Annually 
Rate - 7.5% 
30 Year Fixed 

Your PITI payment would be $4,778.62

If the lender is using a DSCR of 1.1 - you would need actual / market rent of $5,256.48 to qualify for a 75% LTV loan. 

Are you planning on going the Air B & B route? 

 I have a better conventional offer than that right now that will cash flow.

 If you bought this sept, you will not be able to use the new value to take any cash out with a conventional loan until next sept. so, you make sure you are comparing apples to apples.