Hard Money to finance 80%

[Andy R.]

I am able to put 20% down on a 100k property and use 80% as hard money. Would it be relatively easy to get the 80k refinanced within 3 months? Most comps in the area are selling for $120-130k. 

[Charlie Fitzgerald]

I'm presuming you have qualifying issues of some kind now that preclude you from doing a conventional loan now. To use the new appraised value of the asset to refinance, you are going to need to wait 6-12 months. Providing you can remedy your qualifying woes by then, and you meet the conventional lenders guidelines and overlays for an investment property Cashout refinance, you will be alright. I would research the matter with a mortgage broker now, prior to making a final decision about this and spending your 20,000 plus closing costs and potentially trapping yourself into the HML loan, which while not entirely a bad thing depending on your HML lenders terms, is not what you are looking to do.