Assistance with trying to refinance first rental property

[Jory Sturdevant]

Thank you very much for looking at this and possibly helping out. I recently purchased a rental property (duplex) as my first property. As many do, I made quite a few mistakes and probably over rehabbed the property. I just finished getting the second side rented and I am now looking to refinance. I used a majority of my savings on the property renovations and was planning on using the refinance money to help me out during grad school (started last week). I have emailed multiple different banks and credit unions in my area and I am being told that I am only able to potentially able to get 70% LTV for a cash-out refinance. I am being told that this is a "rule" that is done at most banks in Northern Illinois. I am worried after learning more that I might not be even able to refinance as I am not currently working due to grad school. Does anyone have any ideas or tips on getting the "ideal" 75% LTV cash-out? Anything that I should be doing differently or a different route I should look at. Again, this money is to help me quite a bit over the next few years of school.

Purchase price: 64500

Estimated value: 125-130k

Rent 925 and 975

Property manager 9%

The current loan amount is 53K

Thank you again very much if you are able to help out

[Jason Wray]

Jory,

If you come into an issue with renters not making payments COVID-19 has renters relief funds they can also use non-profit in the county/state.  If it really hits the fan for you then you can always file a a disaster relief fund App or apply through Chicago Small Business Resiliency Loan Fund.

As far as needing cash for college do you already have a SallyMae student loan?  The payments can be put into deferment until you graduate.   They also allow 12 month deferments upon request after the fact during times of hardship.  You can also apply for a "Non-collateralize" loan in most case up to $35K for emergencies.  You may already have this information but just wanted to add it just in case!