Your tenancy, if any, in the Premises is terminated 30 days from service of this Notice, or on ________ (whichever is later).         

I know that LTV is typically established by either the purchase price or appraisal (whichever is lower).

However, except for Hard Money Lenders that (might) lend on the ARV (After-Repair-Value), most lenders make their loan based on the Purchase Price or the Appraised Value (WHICHEVER IS LOWER).

An appraiser may well look at both approaches and take whichever value is lower as the value.

Hi, You asked what you were missing....a refi within one year of acquiring the property will be based on the sale price or the appraised value, WHICH EVER IS LESS for the LTV calculations on your refi.

Lender gives me 80% of appraised value or 100% of my hard costs whichever is lower.

Under delayed financing 70% is max cash out of appraisal value or initial purchase price which ever is less. 

You can cash out what your spend initially or 70% of appraisal value whichever is less.

But if they are seeking to hold a property for any length of time and want their cash investment back there are some important rules to understand with conventional loan:If you buy a property with cash (or with a HELOC) you can receive a cash out loan on Day 1.There is not a 6 month waiting period with receiving a cash out loan if you purchased a home with cash or with a HELOCBUT you will be limited to the amount of….Your purchase price + closing costs (costs when you purchased the home)OR75% of the “After Repair Value”…WHICHEVER IS THE LOWER AMOUNT (super important)These rules are important to understand so here are two examples:Example 1: If you purchased a home with $50k of cash, and put $30k of renovations into the loan, and the home was worth $100k. 75% is $75k and $50k is your purchase price.

Jeff, thanks for your reply,I may be wrong but I understood the Recapture Tax rate will be at ordinary income rate, with a Max of 25%, which ever is lower.