Cash out Refi or Wait?

[Blake H.]

After jumping through some hoops I'm setup to make my first investment! On july 28th I stumbled upon the world of Real Estate and BiggerPockets. Since then I've been obsessed in finding a way to make it happen given my situation, I believe it isn't a typical situation..

I currently live in affordable housing tied to my employer and the city. To continue living here, I'm required to work full time and unable to purchase a 2nd property or join any LLC's. After requesting the city make an exception and being denied that exception, I've moved on to purchasing with my wife on title (yes she knows), and be co-guarantor since my income is the vast majority of our income.

Got word today I pre qualified for 125k at 3.5% after 20% down! Nothing under 100k..

Next issue is I have little to no cash....maximum 10k with liquidating personal stock investments and selling a timeshare I should've never bought years ago. Anyone want it? Lol..

Spoke to my mortgage advisor who says I can pull out 25k at 3.15% or 35k as cash out refinance at 3.25% 30yr.

Since I don't have cash now for down payment, am i crazy to think I can use cash out as "cash", then finance what's left? 🤔 total fees for both loans=$5595

As long as I hit the 50% rule it still makes sense right?!?

I realize cash would be much better and I may just need to wait but curious what your thoughts are if I didn't wait.

Thanks