Is it hard to get a Cash out refinance on duplex investment

[Doreen Hall]

Hi! We Have an accepted offer on a duplex that we would like to purchase and renovate. I have a HELOC on another property that we can use to buy that property outright. My mortgage broker tells me that it can be hard to get cash out mortgages these days on investment properties. So I am hesitant to pay cash and tie up all my money- when I could just start with a mortgage and refinance for cash out at new arv in 6 months.

Any advice on getting cash out mortgages? We have great credit and good income on W-2 as well as income from another rental property.

Thanks!!

[Salvatore Lentini]

Hi @Doreen Hall - as long as you're working with investor friendly lenders, it's not hard. Instead of using your HELOC, you could buy it with Fix & Flip funding which would allow you to do less money down at closing. You can get a 90LTV loan and 90-100% of the rehab costs. Or you could fund the rehab with your HELOC. Then when you're done refi into low interest rate permanent financing. If you need to get connected to investor friendly lenders, feel free to message me. I funded most of my portfolio of 127 rentals (soon to be 154 next month...fingers crossed) with these lenders.