How to Cash-out Refi new Rental property?

[Paul Ivanov]

Hello BP,

We are excited to finally join the Bigger Pockets group of motivated Entrepreneurs! 

My wife and I are looking to cash out refinance our rental property in Richland, WA to further expand our rental portfolio. I am a GC in the Tri-Cities WA area and we currently invest in New build residential spec homes for sale and have been using private money. That being said, we would like to add rentals to our portfolio and take advantage of the low interest rates to unlock the equity. The home has been renting for 4 months now and has about $230,000 in equity. This is our first rental property so I can see why banks have told us to wait 2 years before we can cash out on an investment property being that we are new to this part.

So our question is, Are there other options to use this home to purchase future rental properties? If so, what are they? Any insight is helpful and much appreciated.

Thank you!