questions about the refinance of my house hack

7 Replies

Hello fellow investors hope all is well, I recently purchased my first rental property/House hack (Will be my primary home ) . I purchased the property using a hard money loan under my llc (purchase price 80k , Rehab 35K) currentl HML $115k, i did have some unforeseen expenses come up and I will have to come out of pocket $20k to cover these expenses overall i'll be all into the property at $135k. The house will easily appraise for $180k-190k My question is for the refinance part. Am I able to purchase the property from my llc using a traditional 30 year loan under my name ? thus allowing me to refinance out of the HML, get my cash out without having to wait for the traditional 6 month seasoning period?

(example: 115k owed from HMl , Additional 20k of out pocket expenses, all in at 135k, purchase the property from the llc at $150k (check of the difference to be cut to the llc once HML lein is payoff )

Any feedback will be greatly appreciate it. 

Thanks y'all 

If you owner occupy this property why the heck are you trying to purchase this in an LLC? Rates are lower if you purchase in your personal name if you approved.

They have lenders that have zero seasoning requirement but the rates are higher.

@Josue Rivera

Sorry long day.

How sure are you on the ARV. Typically you see refi appraisals come in light.

What you asked sounds possible, I would talk to some lenders and discuss options.

Originally posted by @Josue Rivera :

Hello fellow investors hope all is well, I recently purchased my first rental property/House hack (Will be my primary home ) . I purchased the property using a hard money loan under my llc (purchase price 80k , Rehab 35K) currentl HML $115k, i did have some unforeseen expenses come up and I will have to come out of pocket $20k to cover these expenses overall i'll be all into the property at $135k. The house will easily appraise for $180k-190k My question is for the refinance part. Am I able to purchase the property from my llc using a traditional 30 year loan under my name ? thus allowing me to refinance out of the HML, get my cash out without having to wait for the traditional 6 month seasoning period?

(example: 115k owed from HMl , Additional 20k of out pocket expenses, all in at 135k, purchase the property from the llc at $150k (check of the difference to be cut to the llc once HML lein is payoff )

Any feedback will be greatly appreciate it. 

Thanks y'all 

You may find a lender that can let you transfer property out off LLC into your name during refi.

I'm not sure if lender would want it to be your primary before refi, or just intend to make your primary. The reason I bring this up is that most hard money lenders do not want you living in property while their loan is on it. 

My guess would be that many lenders would be hesitant to give you loan to purchase property from your LLC. Since you own LLC you are basically buying property from yourself. There are too many shady people who would use that to launder money and what not so I don't think banks like to do that.

@Josue Rivera If you are trying to refinance with a Fannie/Freddie conventional loan, you can deed the property in your name as part of the closing. If you (and wife if married) are the sole owner of the LLC, Fannie will allow it. If your are going Fannie/Freddie, you can refinance your $115,000 now without waiting on the 6 months seasoning. If you want to take some additional cash out, you will need to wait 6 months from the date you purchased the property.