Pulling Equity out of home a few months after purchase
Looking to buy single family home that could have around 30,000 in equity right away. Owner says he would sell to me at a steep discount. Just a tired landlord is all. How can I do this and only purchase the property at what he asking first? I would like to pull equity out within 6 months. Just trying to keep down payment as low as possible.
That's usually pretty tough since you can't get a conforming loan within 6 months of a Title transfer. So, cash out refi will only work in 6 months. You would have to go with nonconforming lending at best. But, doubtful that somebody would lend you near 100% ltv or over purchase price. As soon as you close, that sales price just set the new market value, so your "perceived" $30k equity is gone.
I know some people advocate other ways, but they seemed pretty involved to me and maybe not worth it for a portion of $30k. Anything else that comes to mind get "hokey." Maybe somebody else has a decent way.
I honestly would just take the win and get it at a discount. I'd be happy to chat if you'd think that would help. Just send me a message.