Hi Everyone !
I am on the last stage of my first BRRRR single family property. I ended up waiting 6 months to get a cash out refinance. Was there any way I could have done this sooner? I keep getting different asnwers. I purchased in cash with a heloc fyi. Any helpful info would be much appreciated. I want to do another BRRRR but do not want to wait 6 months to pull my money back out if possible.
If you pay cash for the property it is possible to cash out prior to 6 months with delayed financing.
You are restricted to pulling out a max of the purchase price plus closing costs prior to 6 months. Delayed financing you still go according to the current appraised value of the property.
If you include on your closing statements (which vary state to state - HUD-1/ALTA statement ) the renovation costs - and have them charged at closing...... This renovation cost now becomes an initial closing cost and can be included with the max that you are able to pull out prior to 6 months.
This is at the underwriters discretion and doesn’t work with all lenders, but it is possible.
You could use a portfolio lender that will cash you out right away, but the rate and terms are much better if you can wait the 6 months.