How to refi out of a BRRRR thats Seller Finance

[Steve Krause]

Hey Everyone!  I have a few seller finance deals that I am currently rehabing and was wondering if anyone had any creative ideas of pulling the renovation money out while still keeping the seller financing loan since they are 0-3% in place.  Below is a general example.

Bought a house for 100K with majority of it being seller financed at 0% for 20 years.  I dumped around 50K into the property and now is worth around 200-220K.  I want to keep the property longterm since its a good rental and the interest rates unbeatable but I want to pull by 10K downpayment as well as renovation budget out of the property.

Has anyone ever had any sucess refinancing a portion of the home while still keeping seller financing in place?  Or have any other creative strateges for pulling the money back out?  Most lenders I spoke with said HELOCS are not an option since there is still a lien on the property.  

[Ko Kashiwagi]

Hi Steve,

You could put a second position loan on it - like a HELOAN but this will be based off of income/tax returns. A lot of people are similar position - if you have a reason to use the cash, it may make sense to just cash out refinance.