Buy in cash then finance later?

Question

Newbie question here.

I'd like to buy a distressed property, which is cash-only. The plan is to fix it up, then finance it later.

Of course, I want to make sure I cover my bases before jumping into this, so my questions are:

1) Is it possible to later finance a property that was sold as cash-only?

2) Will I end up needing a higher down payment, or a higher interest rate vs buying with a mortgage right off the bat?

3) Are there any red flags I should be looking out for with a cash-only fixer?

Thanks in advance for the help!

Kyle Mccaw · Answer

@Tyler D. My lender requires a period of time prior to doing a cash out refinance. Many lender will do a cash out refi based off the purchase price...not the increased value. I have seen people lend money to themselves from an LLC they own. This way they are going to the bank to do a rate-term refinance instead of a cash-out refi.

Buy in cash then finance later?

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