For example: I purchased a house all cash fix it up, get renters to move in. A few months later I'm ready to do a cash out refi. Without a day job or income will I be able to get approved for a cash out refi? Thanks for the support, BP
With most banks, NO.
With some banks, perhaps. Depends on what your track record and credibility is as someone doing this stuff. If you have other properties that are producing income, that may help. Time may help.
Some couples often have one traditional W-2 wage earner and someone doing RE or other entrepreneurial items. That's kind of what we do, but we have gotten to a point (40-60k net) / year with rental income that banks have to consider that as a real thing in terms of lending.
@Patrick O'Brien - You could get a commercial loan to do cash out. It will be based on the NOI of the property rather than your income.
You would likely need to use a commercial or private money lender. However, they will likely be significantly more expensive in regards to points and interest.
Someone can correct me if I'm wrong but I think commercial loans are also amortized for 20 to 25 years for the amount of the monthly payment but the loan itself is only for 5 to 10 years. At that point it is renewed like a new loan with current interest rates, etc. If you decide to go commercial, make sure you know what all your costs will be short and long term.
@Dave Garlick Here's my tough question for you though Dave. Pretend your 24 yrs old again. I have enough money to purchase a house all cash in the bay area. I don't have a source of income, just finished school and made money from investing. So without steady income if I pay all cash can I then refi the property after I get renters moved in? even without steady income or a day job? cheers
@Patrick O'Brien - Can you refi cash out this property? Yes quite possibly. You need a "bank alternative" lender. PM me for details.
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