Cash-out refi after full-cash purchase
I'm currently looking at a foreclosed property. Fannie is requiring that investors have a cash offer. The property is $24,000. Needs about $10,000 in repairs. ARV is $50,000. Not quite the numbers that hard-money lenders want to see. And I don't really want to flip. It is a multi-family property that I want to hold.
I have the $34,000 available in the form of a HELOC on my primary residence that I would lend to my LLC. So purchasing the property and renovating is not an issue. However, I don't want to take years to pay back my personal HELOC. I'd rather have a note in the name of the LLC using the RE as collateral and immediately pay back (most) of my personal HELOC.
Has anyone had any recent luck with a cash-out refi if you own the property outright? I searched the forums and saw some older posts but wanted to see if this is still a common practice. Is there another way I should be approaching this?