"Rate and Term Refinancing" with Cash buy

[Qwesi McCray]

I'm looking for creative exit strategies for buying properties cash.

This is what I understand. Please correct me if I'm wrong. 

When purchasing a turn key property cash at a discount I could cash out refi after seasoning (3-12 months).

But let's say I didn't want to cash out. Just simply get my money back.

I could then Rate and Term Refi, right? Are there any closing costs with that? Is there a limit to how many rate and term refis someone can do? Does this work for SFR, multi and commercial properties?

Any help would be greatly appreciated. If you know any lenders or mortgage brokers I should contact of this let me know as well. Thanks in advance. 

[Darren Eady]

All loans have costs.  But you have the option of having those costs paid by you (cash or check), by an increased loan amount, by the interest rate (sometimes) and by the seller (if you are purchasing a home).  

You are asking if your rate and term refinance or your cash out refinance will have closing costs - YES.  There is an appraisal, underwriting, processing, origination, credit report and other fees.

You can pay for these costs out of your pocket or bump up your interest rate high enough so the lender will be able to use the premium they get for lending at a higher rate to pay your costs. This isn't always available because there may be adjustments already to your rate for non-owner occupancy, LTV, credit score, etc., which would make it impossible for your interest rate bump to cover all of your costs.

Many lenders will ONLY allow a rate and term (no cash out) refinance within the first year of purchase of the property.  Some lenders will use the purchase price within the first year of ownership, instead of the appraised value, to determine value.  You'll have your best luck with leniency on both of these issues with local banks close to the property you purchased.  

Good luck in your RE investing!