Cash out Refinance - High Appraisal = More Cash Out?

Cash out Refinance - High Appraisal = More Cash Out?

Rental Property Investor · Montgomery County · Member since 2019 · 72 posts · 9 votes

Hello again,

So, I am in the process of Cash Out Refinancing my one rental property at $175,000 estimated value.

Appraisal came back at $182,500.

Can I pull out from the $182,500 appraised value or do I need to stick with the $175,000 proposed value?

This is my first Cash Out Refinance, so any help would be great.

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Developer · Houston TX · Member since 2018 · 423 posts · 400 votes
4y

@Lawrence Paul

Congrats on getting a higher appraisal on your rental. Usually, banks will give you 70-80% depending on the lender on appraised value. They will also look at the rent and make sure your rent can cover the expenses and mortgage. Your mortgage person will be able to let you know how much they will be willing to give. Just make sure your property still has healthy cash flow versus taking out all the equity.

Congrats again

Best of luck 

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  • Developer · Houston TX · Member since 2018 · 423 posts · 400 votes
    4y

    @Lawrence Paul

    Congrats on getting a higher appraisal on your rental. Usually, banks will give you 70-80% depending on the lender on appraised value. They will also look at the rent and make sure your rent can cover the expenses and mortgage. Your mortgage person will be able to let you know how much they will be willing to give. Just make sure your property still has healthy cash flow versus taking out all the equity.

    Congrats again

    Best of luck 

  • Rental Property Investor · Montgomery County · Member since 2019 · 72 posts · 9 votes
    4y

    Thank you!

    The property will still cash flow and rents have gone up so much in my area that my cashflow will actually be greater, despite the Cash Out Refinance, with the next contracts.

    They are doing 75% LTV.

    I will have to give them a call tomorrow.

  • New to Real Estate · NY · Member since 2020 · 196 posts · 29 votes
    4y

    Can you refinance a property and then put it on the market?

  • Rental Property Investor · Boston, MA · Member since 2019 · 2k+ posts · 1k+ votes
    4y

    @Lawrence Paul YES! More $

  • Rental Property Investor · Montgomery County · Member since 2019 · 72 posts · 9 votes
    4y

    Want to update everyone because I spoke with my leander and they said:

    Yes, I can update the LTV amount you a higher cash out!

    Very exciting!

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