Delayed financing on cash purchase

[Jake Fugman]

Hey All, 

I have a scenario that I wanted to get advice on since there seems to be some ambiguity based on my initial conversations with lenders.  If someone is looking to get delayed financing on a rehab purchase that was paid for in cash - what is the best route to maximize the equity cash out/LVT?  Goal is to extract equity from this project ASAP for another. 

Breakdown below:

$200,000 purchase (paid in cash)

$175,000 rehab (paid in cash to be completed approx 6 months after purchase)

$450,000 ARV (based on realtor CMA)

*Will owner occupy after rehab

Is it possible to take out a standard conventional owner occupy mortgage this long after original purchase if there are no lenders in first position? Anyone aware of lenders that will grant the loan mid rehab based on ARV vs standard appraisal?

Any feedback is appreciated!

[Chris Mason]

After six months, it's not delayed financing. It's just a normal cash out refinance. Appraisal will be based on market data and property condition at that future time. Appraiser will of course see your purchase price and treat it as a data point, best way to overcome that is to hand him a before/after binder that includes all improvements you've done to the property etc.