Skip to content
×
PRO
Pro Members Get Full Access!
Get off the sidelines and take action in real estate investing with BiggerPockets Pro. Our comprehensive suite of tools and resources minimize mistakes, support informed decisions, and propel you to success.
Advanced networking features
Market and Deal Finder tools
Property analysis calculators
Landlord Command Center
$0
TODAY
$69.00/month when billed monthly.
$32.50/month when billed annually.
7 day free trial. Cancel anytime
Already a Pro Member? Sign in here

Join Over 3 Million Real Estate Investors

Create a free BiggerPockets account to comment, participate, and connect with over 3 million real estate investors.
Use your real name
By signing up, you indicate that you agree to the BiggerPockets Terms & Conditions.
The community here is like my own little personal real estate army that I can depend upon to help me through ANY problems I come across.
Creative Real Estate Financing
All Forum Categories
Followed Discussions
Followed Categories
Followed People
Followed Locations
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,

User Stats

8
Posts
0
Votes
John Smith
0
Votes |
8
Posts

Best Way to Pull Equity Out of Cash Deal - Cash Out Refi, Delayed Finance, DSCR, etc?

John Smith
Posted

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?

Loading replies...