Cash purchase and rehab - How do I refi?

[Hemanth Grandhige]

My lender is telling me that since I own more than 4 financed properties he can only refinance the purchase price of the home and not cash out my rehab expenses.  He seems to be knowledgeable and came recommended from here on BP so I'll take his word for it.  

I'm working on another deal right now. Purchasing a home for 45k cash and will probably have to put 22k into rehab before i can rent it out.  I want to refi this property as well.  He is telling me that I need to somehow roll the rehab expenses into the purchase price of the house.  I know how to do this if I was financing it. But how do I roll the rehab expenses into the purchase price if I'm buying it cash? 

Any ideas?  (I'd ask my lender but it appears he's not replying to email over the weekend. )

Thanks for the help. 

[Account Closed]

The only way to roll the rehab costs into the purchase price is for the seller to pay for the rehab, which defeats your purpose. No, that does not work.

Fannie Mae has a limit on the number of financed investment properties one entity may own. If you have qualifying partners you can increase the number. But that cuts into your gross profit.