Cash Out Refinance On Investment Properties

[Delmas Edwards]

Hey, Guys so I purchase my first rental property in Detroit 15K plus closing which came out to 18K and rehab it at 11.5K. I also have a tenant that's paying $775 a month with a one year lease. I was trying to do a cash-out refi but loan was too low. My question is what other steps can I take to pull my cash out this property to be able to purchase another one?

[Andrew Postell]

@Delmas Edwards this is a very common issue.  If you think about it, people have car loans for more money that this loan.  Many banks just won't lend this low...but some will!  You should continue to call around to different banks to see which ones have no loan minimum.  Or maybe talk to your local real estate investing network group to see what lenders people use there.  A couple of little pointers here:  if you use a conventional loan, you will be limited to 75% of the "after repair value".  Likewise, with conventional lending, you will need to own the property for 6 months.  There are other loan types out there. I wrote a pretty lengthy article about it HERE Feel free to ask more questions if you need.  Thanks!