Quote from @Jay Hurst:
Quote from @Moshe Cohen:
Hi everyone!
I have an option to buy a house for 290k with an ARV of 350-360.
I have the funds in cash but was told I need to wait 6 months before I can refinance for the ARV and not for the purchase price I paid for it.
Any suggestions on how to buy it with the option to refinace it right after??
Thanks in advance...
@Moshe Cohen The easy answer is called "delayed financing" assuming you are buying/bought the property with cash. You can use the stepped value on delayed financing, but you are limited to what you paid for the property cash in hand plus closing costs. So, you cannot borrow more then 290k plus closing costs in this case. HOWEVER, for most investment property cash out programs you will be capped at 75% loan to value (the delayed financing piece does not effect this loan to value max). So, in your case if we assume a 360k market value the most you can borrow would be 270k anyway. So, the fact that you are capped to the purchase price plus closing costs does not come into play here.
Thank you for replying, 270k will be great, the thing is, I was told, doing a cash out right after the cash purchase, I can only take 75% from the 290k which is 217.5, so trying to figure out how to take the 270k without waiting 6 months.
