Cash purchase to cash-out refi

[Alison Rodriguez]

Hiya!

I have a property under contract in Hagerstown, MD, a SFH for $94K with an ARV of $160K.

I'd like to use a personal line of credit to purchase the property, pay repairs out of pocket (minor) and then do a cash-out refi ASAP (3 months is what I've heard from the banks I've been in touch with) and cashflow with the rent roll.

Has anyone done this kind of deal? Any tips on personal lines of credit -- who to use or avoid -- any anyone finding LTV cash-out refi above 75%?

Looking forward to reading your advice and insight :)

[Benjamin Seibert]

Quote from @Alison Rodriguez:

Hiya!

I have a property under contract in Hagerstown, MD, a SFH for $94K with an ARV of $160K.

I'd like to use a personal line of credit to purchase the property, pay repairs out of pocket (minor) and then do a cash-out refi ASAP (3 months is what I've heard from the banks I've been in touch with) and cashflow with the rent roll.

Has anyone done this kind of deal? Any tips on personal lines of credit -- who to use or avoid -- any anyone finding LTV cash-out refi above 75%?

Looking forward to reading your advice and insight :)

 Congrats on getting a property under contract! I have a lender who will lend on the rehab of a property if you want their contact? Their local to WV & MD. You'll want to check into seasoning periods for some banks - some require a 6 mos seasoning period after purchase. 

On the refi side. I've seen as low as 20% for 30 yr fixed. Most common is 25% for 30 yr fixed though.