Real Life Property Deal .... Questions please.....

[Michael Dunn]

So The appraisal is complete and I got it back the other day. Given this, I now have real life numbers , and can now look at what my best options will be 6 months from now ( in June of 2016 ) , to continue my pursuit in purchasing Rental Properties.

Here are the stats on the Property I just had appraised / will be closing on in 2 weeks .

Purchase Price is $68,000  ( includes my all in cost ... repairs, closing, down payment, etc. )

The Appraisal come back on the property for $108,000

This gives the property $40,000 in Equity

This will be an Owner Occupied property ( Primary Residence )

My goal with this property, is to Hold on to it Long term, and use it as a Rental property in a year or so from now

But my short term goal ( what I am wanting to do ) is to do a Cash-Out refi. at a LTV of 80% ( or roughly $21,000 that I could pull out in the form of cash ).... This assumes that the MAX seasoning period before I can do the refi. is 6 months

I would then use this $21,000 to purchase another property as a Rental property , but this time ... I'd put 20% down , and buy it as an Investment property , and thus being able to turn right around and Rent it out vs having to wait any period of time before I rent it out ( no Seasoning Period ).

So I would then continue the cycle of Purchasing properties as Investment properties, buy below Market value , as well as run my numbers and Know that I can Cash Flow on each and every property..... Once each property is fixed up and ready to be rented ... Rent it out, Do a Cash-Out refi. ( assumes no Seasoning Period is required before the cash-out can be done ). Wash, rinse , repeat

A few specific questions please :

1. Hopefully I can get 80% LTV or higher.... since it's a Prmary residence and not an Investment property ? Is a LTV 0f 90% or even 95% possible ?

2. In 6 months from now .... to do the Refi. , will I HOVE TO  get another Appraisal ?

3. Anyway to Avoid having to pay for any Closing Costs on the Refi. ? Worst case, I just roll the Closing Costs into my new loan , vs having to pay for it out of pocket ( roughly $5,000 )

4. Assuming that I have a mortgage of $68,000 on the property right now ..... by adding on another say $21,000 ( $26,000 if add in $5,000 for closing costs ) , so will say my new Mortgage goes to $94,000 ..... given this, how much would my Monthly PITI then be ? Around $700 a month sound accurate ?

If anyone who has expierence with this method of purchasing / acquiring Rental properties, please don't hesitate to comment , as well as any advice you may want to give :)

Always appreciate any help and input I get from fellow members

Thanks so much