Cash out refinance on a investment property

[Matt Perdue]

I have two questions. I'm new to bigger pockets and it looks like people here can help. I'm going to purchase a investment property for 40k the tax assessment value is 130k. It needs minor work. Should I purchase all cash and put a mortgage on it after the repairs or get a mortgage on it do the repairs and cash out then. If so how long do I have to wait to do a cash out refi? I'm want to pull the equity out of this property to fund another. Hope this makes sense.

[David Beard]

Here are a couple of avenues to get the 30-year fixed rate money more quickly than 6-12 mths, so just google these terms.

1. Delayed Financing Exception
2. Fannie Mae Homestyle Renovation Loans (yes, available for investors)

Regarding #1:

If you buy and rehab in cash, you can do a cash-out refinance using Fannie Mae's Delayed Financing Exception, and the loan can be done as soon as the rehab is complete (but no later than 6 mths from purchase date). Royal United Mortgage does them, and they lend nationwide.

https://www.royalunitedmortgage.com/blog/2012/01/friday/cash-out/cash-out-refinance-available-sooner-under-delayed-financing-rule

Others on BP are having success getting this done.