Can I get a loan for the rehab only?

[Samantha Soto]

Hi BP community,

I'm still pretty green to the REI world and trying to branch out from what I have been doing so far, which is buying relatively turnkey properties. I invest out of state, although we are thinking of moving within the next two years to be in the market where we want to invest. I would love to save up enough cash to be a cash buyer in a low priced market (currently buying in huntsville and looking into Indianapolis too).

If I buy a property for all cash, can I get a loan for just the rehab that needs to be done?  What type of loan would that be?  What are the terms typically?  Pros/cons of doing it this way?  Ideally after rehabing I could cash out refinance and move on to another property with the same money.  Thoughts?  I'm eager and the thought of having to save up for a cash purchase and a rehab budget is getting me too impatient.  

[Brent Coombs]

@Samantha Soto, if you've bought wisely enough (ie. <70% of appraisal), you can Re-fi (ie. Fi) the FULL purchase price, using Fannie's "Delayed Financing Exception", straight away. 

What you then do with your cash again, is up to you! Cheers...