my second buy and hold

[Derray Quarders]

Investment Info:

Single-family residence buy & hold investment in nampa idaho

Purchase price: $100,000
Cash invested: $100,000

this is my second buy and hold.

How did you finance this deal?

Bought with cash

How did you add value to the deal?

put 5k to clean it up and rented out right away

Lessons learned? Challenges?

i wanted to refinance right away but a couple lenders said i have to own fir six months first?

Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?

my business partner is a real estate agent

[Anna Strausbaugh]

Wow @Derray Quarders! Congrats! How did you find a property in Nampa for $100k?! That's awesome! Is it a single family home? How much rent are you getting for it now that you have it fixed up? You should consider an All-In-One loan for this (I see your comment about the cash out refi). It might be a good product for this type of purchase. If you need a rec for a lender that does this type of loan feel free to reach out, happy to share his info.

[Grant Schroeder]

@Derray Quarders if you bought with cash, you can cash out refinance right away! Only when you buy with financing is there a seasoning period before being able to refinance. Let me know if you have any questions about this! Would be glad to assist you with getting your cash back quickly.

[Derray Quarders]

hello Anna and Scott,

So, the rent we are getting is 1,350 per month. I am planning on waiting to refi until rates come back down a bit. I was hoping to cash out refi and pull out 160k but it seems that can't happen in the first six months. you can pull what you paid for it and that's it.

To answer your question, we have been cold calling homeowners and knocking on doors to find deals. we also signed up with a lead generator as well. The goal is to buy and hold but rates are making that really hard in our market over here in Idaho. 

Anna, looks like you are here in Boise? Maybe we should do lunch sometime and see if we can put some deals together? Our only dilemma right now is finding deals that make sense. I have some other agents that bring me deals and I have them list it after the rehab, not sure if that interest you or not?

[Ko Kashiwagi]

Hi Derray,

If you are looking to simply get cash out of the deal based on the purchase price, you can do a delayed financing. If you want lenders to consider the new value, you can do a cash out refinance after satisfying the seasoning requirement. As you mentioned most lenders need to wait 6 months but some only require 3 months.

[Zach Edelman]

Quote from @Ko Kashiwagi:

Hi Derray,

If you are looking to simply get cash out of the deal based on the purchase price, you can do a delayed financing. If you want lenders to consider the new value, you can do a cash out refinance after satisfying the seasoning requirement. As you mentioned most lenders need to wait 6 months but some only require 3 months.

 This is correct. Some lenders don't require 6 months to do a cash-out refinance and lever off the appraised value. 

[Anna Strausbaugh]

HI @Derray Quarders! Yes, we certainly should connect sometime, I cover the whole Treasure Valley as well as Valley County (McCall). Let's chat sometime, feel free to give me a call, my info is below.