Cash + Rehab + Rent + Refi Strategy
I'm interested in using this strategy for building my portfolio of buy and hold properties. For example, purchase a SFR for 50K cash, put in 20K for rehab costs (ARV of 100K), rent it out to a tenant for cashflow and then refinance 70% LTV for $70K cash out. Rinse and repeat. I have several questions that come to mind that I'm hoping to get some answers on from the board.
1. Will lender require seasoning? If yes, what are the typical time periods?
2. Are there any lenders that don't require seasoning?
3. If property is purchased cash with equity in place (ie. $70K purchase price and $100K value), will lender perform a cash out refinance right after the purchase?
4. Will portfolio lenders perform a cash out refinance on 5 properties at the same time?
5. Are the LTVs for cash out refis different on SFH versus MFD? If so, what are the typical LTVs for each type?
Thanks in advance for your replies.
Best,
-Leo