Need help regarding a deal.

[Charwak Gummalla]

Hello BP family,

I need some advice regarding a deal I am looking at.

The property is listed below market and I want to buy it and rent it out. I also want to cash out refi.

Th hhouse is listed for 70k below market. We want to invest 20% and fix it a bit (the house is just 4 years old and just need some tlc. It's listed below coz the sellers are moving out of state and want to get rid of the house. Of course we will do all the inspections and due diligence)

Th goal is to fix it up a bit and cash out refinance it. The market value is about 450 and say we bought it for 370, can we cash out refi after fixing it? Will the appraisal be an issue coz we bought it for 370 3 months back?

Thank you for the advice

[Chris Seveney]

Quote from @Charwak Gummalla:

Hello BP family,

I need some advice regarding a deal I am looking at.

The property is listed below market and I want to buy it and rent it out. I also want to cash out refi.

Th hhouse is listed for 70k below market. We want to invest 20% and fix it a bit (the house is just 4 years old and just need some tlc. It's listed below coz the sellers are moving out of state and want to get rid of the house. Of course we will do all the inspections and due diligence)

Th goal is to fix it up a bit and cash out refinance it. The market value is about 450 and say we bought it for 370, can we cash out refi after fixing it? Will the appraisal be an issue coz we bought it for 370 3 months back?

Thank you for the advice

many lenders will require 6 months but depending on if you go DSCR or the type of financing, that will matter. The bigger quetsion is what can you get for rent on this? If you are in it for $450k are you going to be able to get close to $4k in rent for this to make it worth your while? Have you run the numbers to see if it comes close to cash flowing?