Updated almost 5 years ago on . Most recent reply
Cash out refinance when I already have debt?
Hey guys! In august I bought my first property that I’m doing a live-in flip. I’ve been working as an acquisitions manager for a wholesaling company so I’ve gotten pretty decent at knowing a deal when I see one. I bought this house for 140k and arv is 260k-280k. I’ve gotten quotes and it needs about 25k ( I think more like 30k) of work to be worth that.
My goal is to do a cash out refinance. The only thing is that I don’t have the cash on hand to pay for repairs out of pocket.. I have 37k credit limit on credit cards but am obviously hesitant to use that.. I’m wondering if there’s a better way to finance my rehab so that I can do a cash out refi and pull money out for another property. If I take on more debt to fund the rehab will it be difficult to get approved for a refinance?
My credit score is around 730-740 and I’m 26 years old. Not much other debt just a few thousand on a car. Should I take out a hard money loan? Just save up the around 30k? I have 2 credit cards with $6500 at zero % interest for another year. Should I use those in addition to something else? Any advice would be GREAT! Thank you.
Most Popular Reply
Look into 203K loans. I've never done one so you will have to do your research on them but the short of it is You live in the property have a contractor (who is familiar with 203K work) perform the work. There are specifics to it but the lender (bank) will fund both the property and the rehab.