Cash Out Refis - No Stay, No $PAY...?

[Leonard B.]

Hey, Team BP.

Asking for a friend:

I have a friend who has a 30 year mortgage SFH she paid $150K for back in 2000; now owes $70K mortgage balance; home value $200K; wants to take $20K out to get into REI like me. She decided to rent the house while traveling on holiday for the past year (COVID did not stop her). We talked to banks and they said she had to be living in the house to refi it. Uuhhh? I don't understand. Even though she's buying it and been living there over 15 years…? Are there any cashout refi products available to her and vets like us? Some of us want to keep our houses as our (HOR) home of record, but we get around and may choose to go live in Maui down the street from Brandon Turner for a year to see what island life is about :-) and don't want the house to set empty…

‘Appreciate any feedback yall may have on this one.

Standing by,

Sincerely,

Leonard

[Andrew Postell]

@Leonard B. let's assume that she can qualify - you just need to speak to a different bank.  If one bank says no, then go to another bank.  If there's a qualification issue with the property or the borrower - that's something else.  But you can certainly get a cash out loan on an investment property.  

Here's my 3 suggestions:

1. Post in the Bigger Pockets STATE forum that you are looking in. There are usually some good, local investors that monitor those forums. Maybe they already have a suggestion or recommendation for you? Certainly try there.
2. Visit your local REI groups. There are many groups that meet across the country. Some post here on the Bigger Pockets Marketplace. Many post on meetup.com. Networking is always a great practice and you never know who you might meet there and what good information they have to share. You probably can't visit them right now, but many are still networking online and there will be a time when you can visit them in person.
3. Calling - and then there's this option. Calling 200 lenders is not a stretch when going this route.

If there's something else that you think might be important to speak about then let us know.  Thanks!