Rental Property Investor · Allentown PA, United States · Member since 2016 · 567 posts · 442 votes
I've been browsing some house-hack and investment property listings between MLS and craigslist FSBO in Philadelphia. I have a fairly good understanding of the neighborhood and rental markets in philly but it seems like any deal worth having is a FSBO listing, most likely from a wholesaler wanting cash. My question is, is it possible to use hard money to pay "cash" for a deal, then refi out with a conventional mortgage at 75-80% LTV? I have heard about this being done as part of a BRRRR strategy when a rehab is included, but what about if a significant rehab is not needed and more of a lip-stick rehab while you live in it? Does it make a difference if it is owner occupied when thinking about a "seasoning period" with the bank?
Philadelphia, PA · Member since 2016 · 73 posts · 28 votes
9y
You can use hard money for the deal but a lot of lenders max out at 70% LTV for a refi and most require a seasoning period even if owner occupied. If you look around at smaller banks and credit unions you might be able to find more flexible terms but it isn't guarenteed.