a property that is purchased as an Investment
I was wondering what the seasoning period ( if any ) would be on an investment property, as far as, how long until you can do a cash-out refi. on the property ( the seasoning period if any )?
Also please, what is the going max LTV on an Investment property ? I'm guessing that your credit score, equity in the property, amount of $ you have in your bank account all comes into play ) ?
Thanks everyone - Michael
Seasoning to use the appraised value is one year secondary market and most banks follow that, seems a few holding in portfolio may use 6 months. Seasoning really has to do with the market activity and changes in valuations. Accounting wise, it's one year.
Cash out on investment property is non-existent to tough to going with portfolio lenders at 60 to 80 %, much of it has to do with the factors you mentioned and your experience or management in the business.
Inside a year, it's the sale price or appraised value, whichever is less. Rehabs would be sale price plus costs of improvement or appraised, whichever is less.
You may find someone who advocates buying, fixing, renting, cash out and move on, they will have a unique lender relationship and that is hard to duplicate in reality, but sounds good, don't buy into that unless you know you have a lender that is willing to go there. :)
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