How long before I should contact a local bank about refinancing?

[Derek Ferguson]

I just closed on a 4 bed 1.5 bath in Roanoke, Va. The purchase price was 61k and I put 25% down. I got the loan through a local credit union. My payment including taxes and insurance is $397 per month and I believe I can rent this property for $900 per month after renovations. I expect the renovations to cost about $15k. It appraised for $78k in it's current condition.

My question is how long should I wait before contacting a local bank about refinancing the property? Should I wait until I have it rented for 1 year? If anyone has experience with any local banks in Roanoke and knows what they expect I would love to hear about it. Thanks!!

[Charles Carillo]

@Derek Ferguson

Sounds like you bought right! I would spend a couple hours and call/contact every bank and credit union within 1 hour of the property and see what the terms are from the various institutions. In my experience, the terms for a simple loan can vary greatly. I would make sure that the person you are working with has actually closed loans on similar investment properties. It is amazing how many people that work at lending institutions are new and learning as they go. This can cost you more money and more headaches when it comes time to close (ask me how I know). Good luck.