Cash-Out Mortgage - Getting the appraisal I need.

[Chris Hannigan]

Hello. I recently bought a duplex cash, and wish to cash out the equity, so I can purchase more. I have a couple questions: 1: my understanding is that the property has to "season" for 6 months. Are there any other rules I need to know. 2: Will banks accept a price-to-rent valuation when appraising the property? The recent sales comps value the house at about half of what a price-to-rent approach would. Thank you in advance!

[Chris Mason]

Originally posted by @Chris Hannigan:

@Steve Vaughan, thank you. I am not in any hurry, I can carry this personal loan for 6 months or a year while it "seasons." I just want to maximize what  I can pull out.

 Starting 3 to 6 months ahead of when you want to do the cash out refinance, start going to your future-current comps during open houses. Get disclosure packages, which listing agents will generally send out to anyone who requests them saying they are interested in the property. Now you know everything wrong with your comps. Cherry pick from that, and hand this over to the appraiser. That way he knows that 123 Main St sold for $30k less because of the foundation, etc, rather than dinging your value because they didn't know that information.