How can I get cash out of a home I just purchased? I purchased with cash, in an LLC. Ideally, I'd like 50% of value out in cash. Part I'd use for rehabbing the house before renting, the other portion to buy another house. Any ideas appreciated
You would have to put the home back into your personal name. Once you do that, you can then get what is known as delayed financing through Fannie Mae. Delayed financing, allows a person that paid cash for a home, to refinance based on the appraised value up to 75-80% depending on if its a rental or owner occupied.
You can get up to 100% of the purchase price back out + the refinance closing costs, so long as the property appraises for enough based on the LTV.
Would I need to have the funds sourced for that? If so, and I don't want to, are there any other options?
You can borrow funds that are unsecured to do the purchase. You would just have to pay off or down the unsecured loan that you used to buy the property with the funds from the delayed financing. If any amount remained unpaid, you would have to count that monthly payment into your debt ratio.
See the guidelines below.
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