Updated over 9 years ago on . Most recent reply
Delayed financing and Cash out
I have purchased my third rental using cash for the purchase and repairs. As an example if the purchase price of the home was $30,000 and repairs were $5000. What would be my be course of action to get that entire $35,000 back? I understand that the appraisal value after repairs will dictate how much cash I could pull but for this example let's say it appraises for $65,000. My first rental I've owned for 9 years and my second for 3 years. I'm not sure if that has any barring on the issue but wanted to give you as much info as I can. Also, I know my debt to income ratio is tight and may become a factor. Unless there is some way to side step that factor all together. Also, waiting the 6 month seasoning period would not be an issue.
Thank you for your help.
Most Popular Reply
your recourse would be that you need 35k to be 75% of market value so you can get all of that 35k back, AKA appraisal of $46,666.67.
If it appraises for 65k then you can get out more than you put in.
You'll need a min of 6 month title seasoning (own it for 6 months legally on title) prior to closing the new cash out refinance.