Cash out refinance options

[Mckinley Baggett]

I am currently rehabbing an REO property that I paid cash for. Once it is finished, I am going to keep it as a rental property. Obviously I want to get my money back out of the property so that I can invest it in more properties. Why is it that NO ONE will refinance unless you have owned the home for a year? How is anyone supposed to invest if they have to tie their money up for an entire year? I certainly don't want to pay a hard money investor 15% plus points for a year...anyone have any luck??? Or answers for that matter?

[Alexander Felice]

Originally posted by @Account Closed:

Originally posted by @Alexander Felice:

delayed financing is 75% and no seasoning. add your rehab to the settlement statement and you can get it all back at once.

 Wait, so you can finance the rehab cost for delayed seasoning?  So if I buy a house 50k, put in 25k, I can cash out (50k * 0.75 + 25k) immediately after the rehab? 

 yes. commonly overlooked for some reason

the rule is 75% LTV or 100% of HUD

so before you close on the house, get the rehab invoice to the closing attorney and have them put it on the hud. then you pay UP FRONT and the disburse through escrow.

then when you go to rehab, your settlement statement is cash outlay plus rehab. I recommend lining up this with your lender before hand so everyone knows the strategy going into the deal.