Cashout Refinance

[Nick Zocher]

Hi All,

I'd like to get some clarity on the Cashout Refinance strategy.

I recently listened to a Podcast (Show # Late 50's or early 60's) where @Brandon Turner mentioned that his strategy to buy several properties fast was to buy properties at a discount, rent and let them ride for a few months, and then have property re-appraised at a much higher price, refinance and recapture his capital to use on the next property.

I'm really interested in this strategy, so I began to do some research. A lot of the articles I'm reading mention that this is the "Delayed Financing Program" and only applies to all-cash buyers.

Other articles mention that a major key in order to be approved for the refinance is a large amount of equity in the home.

I don't believe Brandon did all-cash buys, or had great amounts of equity in these homes after only a few months.

Can anyone clarify how to properly use this strategy?

Many thanks!

Nick