This is my first post but Ive been reading for a while. I would like to start off by saying thank you to all the knowledgable foks here that are willing to help others and share from their experience.
Let me run through my scenario. Purchasing house for 60K that after rehab should appraise for between 85k and 90K based on comps in the neighborhood. Looking at financing through local bank mostly because of fast closing and low closing cost (6.25% interest rate though). Rehabbing house and doing all work myself for about $4000-$5000 in cost and then renting it out. I hope to do a cash out refi at 6 months for 75% of the 85K new appraised value ($63,750) paying the original loan off at a hopefully lower rate. Am I missing something? Anybody see any holes in my plan? I dont want the cost of the cash out refi to pin me into the 6.25% original loan longterm.
Can someone tell me approximately what the closing cost and rates would be on the cash out refi on a single family investment property after owning it for 6months and doing the rehab? I understand that any numbers would just be estimates and that a lot can change in 6 months. The refi would be for 15 years.
I have some experience with rentals and rehabs but all the borrowing I have done has been real simple stuff.
Thanks!
