REFI my flip

[Caleb Mclamb]

Hello BP! 

I am planning my first flip and am searching my exit strategies. If I buy a house for all cash, and then for some reason it will not sell then what are my chances of being able to cash out refi assuming I am trying to turn it into a rental property and assuming the flip is complete and its now truly a 120k 3/2 home? 

It seems to me a 3/2 would have a hard enough time cash flowing but is getting the cash out refi even a option? Just trying to figure out a plan B

Thank you for any advice!

[David Friedman]

You should be able to do a cash out refi, but there are some stipulations. 

Most banks require 6 months to a year to season the property. Also, some banks will not refinance based off of the appraised amount, but only what you paid for it.

Also, you won't be able to get traditional refinancing unless you have documented income.