Financing a cash bought rental

[Saman Jafari]

Hey all, 

I am thinking to cash offer for a property however I don’t want to have 100% equity and I rather have less equity but having more properties.
so, my question is if I buy it with cash, can I finance it with a lender to cash out most of money I had put in? 
is there a reason why I should not do it? 

Thanks

[Todd Rasmussen]

@Saman Jafari

On a conventional loan, this is called a delayed financing exclusion to the seasoning requirements.

Yes you can absolutely buy cash and then immediately (or as late as six months later) refinance the property pulling out up to whatever LTV requirements you could have gotten if purchasing with the loan in the first place. Leveraging any position has more risk because you are self imposing additional cost on yourself, but you can borrow more or less depending on your personal risk tolerance.