Investment Properties: Cash Buy to Refi.

[Robert Gorra]

First off, I'm not sure why the banks call it a "re" finance when you currently don't have financing on a property because you bought with cash.  Maybe someone else knows...  

I've basically gotten the "we don't want it" answer when asking the big banks about refinancing a rental property that's worth under $100,000 due to the fact that it's too much work and/or too costly for them to do it.  In my limited research on the topic, either I can bundle multiple properties as a portfolio or use a smaller local bank who will do it.  I've yet to find a local bank in or near Philadelphia that will, but truthfully, it hasn't been high on my priority list.  Also, you can't do it until you have a tenant at least 6 months into a 12 month lease.  So if you're looking to "refinance" your recently acquired rental, and use that money to buy the next one, hold your horses.  

Does anyone know a bank that will refi smaller investment homes with cash out?

[Shahadat Reza]

From my conversation with different banks, Philadelphia Federal Credit Union and Citizens Bank have stated that they do cash-out refi without any seasoning period for upto 80% LTV. We have applied to get pre-approval letter from Citizens Bank, PFCU does not offer any preapproval, at least that's what they told us.