Creative Real Estate Financing
Market News & Data
General Info
Real Estate Strategies
Landlording & Rental Properties
Real Estate Professionals
Financial, Tax, & Legal
Real Estate Classifieds
Reviews & Feedback
Updated 8 months ago,
Best Way to Pull Equity Out of Cash Deal - Cash Out Refi, Delayed Finance, DSCR, etc?
We just closed on an all cash purchase via an SMLLC of a SFR at auction (at a healthy discount to market due to distress) that we intend to use as an investment property, and we're looking for guidance on the best strategies for pulling as much equity out of the deal as possible to roll into another property (identified but yet to be purchased).
There's < 2 months of seasoning for the purchase, cash into the deal is ~$975k w/o rehab (minimal planned so far - turnkey), purchased the property for 35-40% below assessed value, 825+ FICO, and would optimally like to pull out $975K-$1.15M of equity.
Main scenarios we've thought of to accomplish this are:
1) structure sale of property from SMLLC to self and secure 30-year new purchase financing on deal (unsure if legal and tax implications if above initial cost basis)
2) delayed financing (LTV restrictions a concern)
3) cash out refi (seasoning concerns)
4) DSCR (seasoning and rate competitiveness concerns)
5) one of the above plus a HELOC, personal loan, etc.?
What would be the best strategy for pulling as much equity out of the deal as quickly as possible?