does anyone cash out refinance on investment properties worth under 40k?

2 Replies

I own a home free and clear that should appraise for around 30k, however no lenders i have tried will refinance a property at such a low price.  Any advice?

Sorry to hear that @Brandon P. . I am going through a similar issue on a few properties. In my case, the properties should appraise above the bank's price threshold, but because I purchased them too recently, they are only allowed to go off the purchase price. Is there a chance that your property could appraise higher in the next few years with market appreciation and/or improvements?

There is a solution:  

1 - You have to get a HELOC on all of them first.
2 - Take cash from the HELOCS, combine them together, and buy another property where the refi loan would be higher than the minimum 50k.
3 - Take part of the "cash out" from the refi and pay down your HELOCS.  
4 - Take the cash out from the refi to buy your next property.
5 - Repeat steps above until you:
       a - Pay off HELOCS in pieces
       b - Get tired of using the same "cash" (from the continued refis) to buy cash flow 
Keep in mind that your choices of properties must allow all of them to continue to have positive CF...or choose a different property.

Free eBook from BiggerPockets!

Ultimate Beginner's Guide Book Cover

Join BiggerPockets and get The Ultimate Beginner's Guide to Real Estate Investing for FREE - read by more than 100,000 people - AND get exclusive real estate investing tips, tricks and techniques delivered straight to your inbox twice weekly!

  • Actionable advice for getting started,
  • Discover the 10 Most Lucrative Real Estate Niches,
  • Learn how to get started with or without money,
  • Explore Real-Life Strategies for Building Wealth,
  • And a LOT more.

Lock We hate spam just as much as you

Create Lasting Wealth Through Real Estate

Join the millions of people achieving financial freedom through the power of real estate investing

Start here