Cash-out refi/HELOC question right after cash purchase

[Faizul Islam]

I am a wholesaler. I have a property (in good neighborhood) that I have under contract for 40k. The as-is on-market value is about 100k and ARV is about 160K-170k. It is currently rented with long term renters that pay 750/month (under market by 100 for property condition) plus utilities. I want to buy it for cash myself and either do a cash-out refi or get a HELOC on it. I want to do this right away after I purchase this. What are my options to use built in money to get more money out than I just paid for it. I understand that Fannie will make me wait 6 months before I can do this if I want to take money out from equity.

[Andrew Postell]

@Faizul Islam very sorry here.  And thanks for your patience....I picked a heck of a time to travel but I am back on mainland US now.  There are over 8,000 lenders in the US.  I unfortunately cannot speak for them all.  Some lenders have extra rules in place (we call them "overlays") and some just outright hate investment properties.  This is why we preach about working with "investor friendly" lenders.  Usually these are smaller, more local lenders.  Because those lenders usually don't have many overlays.  Fannie/Freddie absolutely, 100% allow this method.  We have been using it for years.  I can certainly point you in the right direction for a lender on the next one but if you want to try to find one on your own try asking these questions to determine if they are "investor friendly":

Questions for Lenders

1. When do you start using rental income to help me qualify? (the answer needs to be immediately)
2. When do you start using “After Repair Value” on my property?
3. How long do you need me to be on title to refinance? (this is important if you do need a short term loan to purchase then refinance out - and the answer should be 1 day...very important that it is 1 day on title is all that is needed to refinance)
4. What is my minimum down payment required? (if they only require 15% down on a single family home that is usually a good sign that you are working with a flexible lender)
5. How many loans can I have with you?
6. Can I change title to my LLC?
7. Do you sell your mortgages?
8. What is your loan minimum?
9. Can you explain to me what your reserve requirements are?