Looking for advice in Illinois!

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Looking for advice! I am located in Illinois and have 2 rental homes. Purchased our first rental a little over a year ago (conventional loan with 25% down) and just closed on our second one earlier this month...

All of our cash is tied up in the second house (purchased with all cash and brrrring) I was under the impression that we have to wait 6 months to refinance to pull the cash back out.. but after checking out a couple sites I am reading that I might be able to refi earlier... just have to find the right bank? Also was just told by a local banker that we cant take out a line of credit for an investment property.. 

Really just wanting to grow our portfolio without having to wait 6 more months.. 

Am I just not talking to the right people?! HELP!

@Jennifer Szoldatits - if you paid cash for the house you can do delayed financing the day after you close, no seasoning is required. The key difference is you can only finance up to what you paid for the property (plus closing costs) subsequent to the 75% ARV. ie: you purchased a property for $100k, it appraises for $134k you can pull out all the money you paid for the property. Now if you want to do a cash out refi for MORE then you've paid you would have to wait for the 6 month seasoning period for conventional Freddie/Fannie lending. You may have other options through a portfolio, or sometimes called commercial lender, but the rates will be higher.

I see you are in Illinois, reach out to @Zack Karp - he and his team are investor friendly and top notch, I've financed a few of my buy and hold rentals through him as well. He will answer whatever questions you have and won't steer you wrong.


Thanks for the tag @Mark Faustrum !

@Jennifer Szoldatits welcome to BP! Mark explained it well. If you purchase with any mortgage/loan that's recorded as a lien, you need to wait 6 months to pull cash out with a Conventional loan. But, if you purchase with cash or a private loan (no lien), you can use a fun little loophole called Delayed Financing to cash out without waiting 6 months. Not many loan officers even understand how it works!

Sounds like you paid cash, so we can use Delayed Financing for you.  So it appears that you're talking to the wrong people LOL.  I'll send you a PM if you want to connect.  Happy to help explain all your options.  If not, best of luck!