Milwaukee Property Mortgage needed small balance

[Jonathan West]

Hi,

I'm acquiring my first rental in Milwaukee, closing with a cash close less than $50,000.

I am looking for a lender that will allow me to do a cashout refi or Heloc against the property post closing.

I would prefer it be based on the properties appraised value or valuation based on income ($1500+/mo) however I'm okay if I can just get a loan based on my cost.

The biggest issue seems to be lenders not willing to lend less than 40k, which based on my purchase price, 80% LTC or less would be less than 40k.

Anyone have any experience with small loans?

I will be buying more property, I am open to keeping all my loans with 1 lender, or eventually taking a loan against multiple assets, which should be more substantial.

Thanks for any input!

Jon

[Darren Budahn]

@Jonathan West

You will not get a cash out refi based on appraised value using conventional financing unless you wait 6 months.  There may be some asset based lenders who will do a cash out refi with no seasoning but you will be paying significantly higher points, fees, and interest rate.

Another option if you are paying all cash is to do delayed financing. You can get your total purchase price plus closing costs back right after purchasing the property in cash up to 70% LTV. So this would only make sense if you are purchasing with significant built in equity.

Otherwise, there are plenty of lenders who will do loans on sub 40k properties.  I would reach out to Jerry Padilla here on BP.  He can certainly help you.