Refinancing after cash purchase

[Mike Enzwiler]

Total newbie question here. If I purchase a property with cash. Say a duplex for $80k and I wish to refinance it into a long term traditional loan.... How long do I have to wait to refi it? And how will the bank determine its value? Thank you for your help.

[Kyle J.]

You could refinance it right away using the Delayed Financing Exception. You'd be limited to the amount you actually have invested though (plus closing costs, fees, etc), as opposed to some much higher ARV you might have obtained after a big remodel. In order to use a higher ARV (as opposed to the purchase price), you usually have to wait 6-12 months (depending on the lender).

Here's some more reading on the topic if you're interested:

https://www.biggerpockets.com/blogs/5110/46871-buy-rent-rehab-refinance-cash-out-refinance-delayed-financing