Bought under market value and trying to cash out, has to wait 12m

[Sara Soleimani]

Hi BP Community and Happy Friday!

We financed an investment property in CA 6 months ago, rehabbed it and rented it. We are trying to cash out from it as we bought it under market value. Our lender says that you have to wait at least 12 months to get appraisal close to the market value. Did any of you have similar situation? They say that the rehab expenses can be added but it's difficult to get to the market value. (Purchased for 280k, spent 20k on rehab and the market value is 360k)

Any advice is appreciated! Thank you!

[Mike B.]

It should be 6 months for "seasoning", but I have heard of certain lenders allowing you to re-fi in a 3month period. 

I've done the 6 month seasoning and refi's x2 now (I'm in Philly, PA).  I would doubt that your state laws are different and prohibit this.  Sounds like a lender issue... would discuss with other lenders