Primary Residence Refinance Success

2 Replies

So being my primary residence it may not be your traditional success story but being new at this it's pretty exciting to me and all I've got so far.

3 years ago I purchased my primary residence in a fairly distressed condition. It was mostly live-able aside from some plumbing issues causing it to smell of sewer gas (bad smells always make for a great deal) and was very dated. Since purchasing it I have completely remodeled the kitchen, 1.5 baths, all flooring/fixtures, replaced the roof, repainted the exterior and added a nicely appointed rec room to the previously unfinished basement. With the exception of the roof I did all the work myself. I recently met with the bank to do a cash out refinance to invest in a rental property or two. 

The numbers are as follows:

Purchase price: $130,000

Rehab costs: $25,000

Current Appraisal: $217,000

At an 80% LTV I'll be able to cash out $53,600 which will be great start for my buy and hold endeavors. Now I'm looking forward to finding that first rental property, hopefully I'm able to find something in a similar state of distress and can repeat the process.

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