Cash-out Refi: Terms and Timing

[Brian Bistolfo]

Hi All,

I'll be needing a cash-out refi on a rehabbed investment property in KC in a couple months. Property is bought in cash so no loan on it currently. Haven't gone through this particular process before so I'm wondering:

1. What rates are folks seeing on 15- and 30-year notes? 25% down or 20% down, my credit and income are solid.

2. How soon do I need to involve the lender in this process? I'd like to refi as soon as the property is rented out (buy-and-hold).

Many thanks!

Brian

[Cameron Pendergraft]

@Brian Bistolfo

In July 2017, we purchased a rental in the Waldo KC area through a bankruptcy auction which already had tenants. What we saw in trying to refi was 25% down and 4.75% on a 30 year if I remember correctly. What we were tripped up on was that the lender wanted to go off purchase price instead of appraised value. We decided to wait and let the property season for 6 months to a year and we'll try again then. Hopefully the difference in interest rates if they go up won't matter since we won't have to leave as much cash in the property.

Hope this helps,

Cameron