I wouldn’t mind a value add rehab with a minimal budget to cash out refinance.   

I did a FHA loan and then took out a home equity loan, when I had enough equity, to refinance it into a 15 year mortgage.

In addition, if you plan to refinance, I’d be sure to look at prepayment penalties.

Good Afternoon fellow BiggerPockets users!My name is Nathan and I own free and clear a small portfolio of single family rental properties in and around Philadelphia. I have over five rented cash flowing single family ...

Fix it up, build equity and refinance. 

Then take that to a local bank and financing it or re-finance as the case may be.

The lender told me that I can refinance after 6 months possibly with 1% lower rate.

My main goal is to try and refinance them after 6 months. 

Which is no goodMy conclusion: This could be ok if I can get the rents up... but still not a great deal... and I don't like betting on ifs. 

Closing costs for a refinance are always the same: origination charge if the bank has one, title, appraisal if one is required (usually paid out of pocket by borrower), any points for the rate if it's below par, pre-paids such as taxes and insurance for your escrow account.