They said that if the contracting buyer didn't have the funds to buy at the time of agreeing on price with the seller - it was under a false scenerio - since they were not going to buy the house from the start.

WARNING: if you do not prepare for this, you can enter a death spiral: deteriorating properties lead to lower rents, worse tenants, more wear and tear, even less cash flow to fund repairs and ultimately erode asset value.I do not mean to rain on your parade, hopefully, this is a helpful long term perspective. 

However, you could look into a “construction exchange” where the funds are used to improve a new property acquired through the exchange, but it must meet specific IRS rules within the time frame. 

While I do maintain a relatively modest percentage of my assets in money market instruments, corporate debt funds, and high dividend stocks, I remain most comfortable with the investments I specialize in and know best.  

For a cash out refi, you are generally limited to 75% LTV and rates right now are in the mid 7s for good credit and a DSCR over 1.0. 

Instead, consider a HELOC or home equity loan to fund repairs, as the interest may be deductible if used for home improvements.This post does not create a CPA-Client relationship.

If you refinance with an 80% loan-to-value (LTV), your new mortgage will be $973,322.

Quote from @Brian King: Quote from @Jaycee Greene: Quote from @Brian King: Quote from @Jaycee Greene: OK, so how do you plan to fund these fix/flips?

In the "industry", you would use an "Acquisition/Rehab" loan that allows you to use part of the loan to apply to the purchase of the property and you'll have some loan funds left over to use for the rehab.

House was purchased August 2024 6k sq ft 9 bedroom distressed home for 66k ARV around 330k in the middle of renovations all of the sudden the bank accounts are frozen and we now have no funds to finish renovation.