Buying & Selling Real Estate Discussion

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Tony Davis
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Pulling Equity out of home a few months after purchase

Tony Davis
Posted Sep 19 2022, 18:20

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.

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David M.
  • Morris County, NJ
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David M.
  • Morris County, NJ
Replied Sep 19 2022, 19:05

@Tony Davis

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.