How to cash out and refinance - not finding it easy

[Robert N.]

Hello BP,

I have listened and read many stories on BP of how people buy a property, fix it up, cash out and use the cash to buy the next - like a BRRR. However, I am having trouble which is frustrating. My income tax returns show that I make good money, so I thought this would not be an issue. I started with a local portfolio lender who said they would give me 80% of the appraisal value...I bought a duplex and fixed it up, rented it, and it appraised at $200,000. I had 100% equity in the deal. So, I went looking an found another investment property and put it under contract without having officially received my 80% ($160,000) cash out. I was flabbergasted that this portfolio lender then had me come in DAYS before I was set to close on the newer property and said he would only give me 25% ($50,000) - no reason...even after I pushed him for a reason. I had to sign to get my $50,000 loan so I could close on the new deal but I was not happy. I AM STILL HAVING TROUBLE finding a lender to give me 70-80% of the appraisal value on that first deal...part which would be used to pay off the $50,000 loan, but that should leave me with another $100,000ish which I plan on using on yet another property I just put under contract. So far, I am not having luck with my getting a cash out on my first deal and a loan for the new deal. I am in KY.

I am looking for lenders who will give me a cash out and a new loan for the property currently under contract (business on first floor with 2 apartments above it - all rented). What is the typical % rate and points I can expect to pay on these things. This will be my fourth property since I started investing in July, 2020 - so I am still learning lots! Thanks! (Worse case scenario, I have to sell my original duplex, do a 1031 exchange to get all my money out of it - but that isn't my plan! I want to buy and hold.) Any help is appreciated!!!