Cash out loan on rental property

[Jim Belleville]

Hello all, I am new to the forum but have owned residential rentals for a few years now and I have a question about a property that I am going to buy for cash and do a rehab on.

How long would I need to own this property before a bank would allow me to take a loan out on it that is more then I paid for it? I would like to keep it as a rental. So let’s say I purchased this property for 55k and put 20k into it. Now the appraised value is 155k. At a 75% ltv I should be able to take out a loan of 116k,right? Let me know if this is even possible before I go and start asking my banker questions I should already know the answer to.