Is there a seasoning period for cash buyers?

[Brian Garrett]

I was under the impression if you paid cash to purchase a property that you would then be able to cash out refinance as soon as you have finished the rehab and rented the unit out utilizing the BRRRR strategy. I was just told in another thread that even if you pay cash for a property you still have to wait 6 months in order to get your cash back out at the ARV value and if you try to cash out refinance prior to 6 months you would only be able to get the LTV based on the purchase price. Is this the case all the time or does it vary depending on the lender? The whole point of the BRRRR strategy is to force appreciation through the rehab ultimately creating a higher value and appraisal so when you take your 70-75% LTV you get all of your money back out. Can anyone help clarify?

[Patrick Britton]

@Brian Garrett one of my clients purchased a triplex with cash a few weeks ago.  He was able to get most of his money out based on current market value (they had to get the property appraised).  

There was no seasoning or anything required...i'll try to ask his loan officer what loan program he used...but again, since he bought with his own cash he was able to get most of it back as soon as he was approved and underwritten.