Cash Out Refi on a Flip
Question…is it possible for a cash out refi to be completed on a home that was closed under six months ago? I have searched and found the answer to be no. But wasn't sure if there were lenders out there that would consider it. Have a SFH purchased for 100,000 with 20% DP. Loan balance of $80,000. Appraisal shows home valued at 199,000. Would like to get my money now via a cash out and pay smaller capital gains on selling day. Any info is very appreciated. Ty!
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In short yes you can do this, but it will likely be at a fairly significant interest rate hike compared to a conventional loan. The other thing is doing this will have no impact on your tax situation since a flip is taxed at ordinary income tax rates no matter how long it is held. A flip is 'inventory' in a business, not an investment and therefor taxed differently.