Delayed Financing (cash out refinance) question

[Ori Skloot]

Hi folks,

I am in contract on my next deal in Oakland, CA.    I would appreciate your advice on whether there are any gotchas that would prevent me from executing my plan.

Purchase price: $250,000 (paying all cash)

Closing costs: $5,000

Repairs: $25,000

Total Cost: $280,000

ARV (estimated): $380,000

I am borrowing $250,000 from friends so that I can buy the property for All Cash. I would like to record a promissory note and deed of trust against the property for their loan.

After I close and do the repairs I would like to get delayed financing and pull out as much money as I can from the property. I'm hoping to pull out $266,000 ($380k x 70% LTV), rent it and be cash flow positive.

Questions:

• Is there any issue with getting delayed financing when having a promissory note and deed of trust recorded on the house for the money my friends loaned me?

• What will be my max LTV percentage? I assume 70% if it's an investment property? I heard it fluctuates depending on the number of properties with loans you own. Currently I have 3 SFDs with a conventional loan and 1 SFD free and clear.

• My DTI is going to get very tight. Will the debt taken on with the new loan for this property hit my DTI? My plan is to rent out this property. Will the rental income (I can have it rented by the time I do the loan) be calculated into my DTI?
• Anything else I’m not thinking of?

Thanks so much for your help!