Skip to content
×
Pro Members Get
Full Access!
Get off the sidelines and take action in real estate investing with BiggerPockets Pro. Our comprehensive suite of tools and resources minimize mistakes, support informed decisions, and propel you to success.
Advanced networking features
Market and Deal Finder tools
Property analysis calculators
Landlord Command Center
ANNUAL Save 54%
$32.50 /mo
$390 billed annualy
MONTHLY
$69 /mo
billed monthly
7 day free trial. Cancel anytime
×
Take Your Forum Experience
to the Next Level
Create a free account and join over 3 million investors sharing
their journeys and helping each other succeed.
Use your real name
By signing up, you indicate that you agree to the BiggerPockets Terms & Conditions.
Already a member?  Login here
Private Lending & Conventional Mortgage Advice
All Forum Categories
Followed Discussions
Followed Categories
Followed People
Followed Locations
Market News & Data
General Info
Real Estate Strategies
Landlording & Rental Properties
Real Estate Professionals
Financial, Tax, & Legal
Real Estate Classifieds
Reviews & Feedback

Updated about 7 years ago on . Most recent reply

User Stats

24
Posts
44
Votes
Merritt Whitman
  • Corte Madera, CA
44
Votes |
24
Posts

Cash-Out Refinancing at 80LTV with BRRRR

Merritt Whitman
  • Corte Madera, CA
Posted
Hi all, Anyone have contacts of lenders who will do cash-out refis on long term rentals at 80LTV? I'm closing on 2 properties in Indianapolis next week and am planning my refi strategy. So far the best that I've come up with is 75LTV on a delayed cash-out refi deal (originally a cash purchase) not to surpass the purchase price. The second property I'm using a hard money loan to close on and the best I've come up with is an immediate cash-out refi of 75% of purchase price only. Both these loans would have low to no closing costs and just be at a higher rate. If I have to then wait 6 months and repeat with conventional 75LTV cash outs at actual appraised value I will but wanted to know if anyone has a better strategy. Ultimately I'd like to cash-out refi both properties at 80LTV (of actual appraisal) so as to not leave any "money on the table", avoiding potential lost opportunity cost with other deals. Any advice or suggestions would be greatly appreciated. Thanks!

Most Popular Reply

User Stats

1,405
Posts
864
Votes
John Leavelle
  • Investor
  • La Vernia, TX
864
Votes |
1,405
Posts
John Leavelle
  • Investor
  • La Vernia, TX
Replied

@Merritt Whitman

I don't think they will lend out of state either. 75% LTV is what I expect for most Refinance deals. That is why my Total Investment Basis (All-in costs) target is 70% of ARV for BRRRR deals. It gives me a 5% margin of error encase the Refinance Appraisal and my ARV are not the same. Or if Rehab costs overrun my estimates. Good luck.

Loading replies...