Multiple Lots & Cash Out Refi

[Brittany H.]

I have been watching a house up for online auction. The property for sale consists of 3 lots, and has multiple deeds. The title company is supposedly trying to combine it before the sale but the sale won't be contingent on that. I'm concerned about financing. I want to do a cash-out refi immediately after I purchase the property (in cash) in order to pay family lenders back. But is that possible if it is multiple deeds? Is it typically difficult to merge lots? 

It is a great deal, needs only minor cosmetic repair (we've inspected as well). Bids are around $75,000 right now, but ARV is at least 200k. Cost to do the cosmetic work would likely not exceed $20k. I need to cash out refi right away in order to pay my family back (they would also co-sign in order to be recipients of the cash out within 6 months). Then I'd use my proceeds to rehab, then rent and hold.

I like this deal because I'd get most of my money out and be able to do another deal afterwards, along with the fact it's bidding for so dramatically under market. But the lot issue may be the reason! Would appreciate any advice!

[Dan Gamache]

In my opinion you will have issue refinancing due to 1 property being on multiple lots. The other issue is being able to refi right after the purchase. Most lenders will require ownership of 6 mo - 1 year to be able to use the appraised value. For the first 6 months most lenders will use the purchase price for value and most are max 65% for cash out refi.