Will I need to get a home inspection for a 50k cash out refi on a 220k SFR rental with existing owner-carry financing, that was built in 1923? In the past, I've only been required to get drive by appraisals. But I don't recall if those were with the same bank that carried the original mortgage. Might owner-carry be treated differently because the purchase was less likely to have been fully vetted? If the answer is "it depends", are the variables known? For example, does seasoning or big vs small bank play into the equation?
No, the bank should just need an appraisal.
I would think if it is not required it would still give you piece of mind knowing that the price that you were aiming for can be confirmed and the refi might give you more. I will do it in my own deals just to know where I can go with my next course of actions based in how much is availble cash back. Good luck to you and hope that it works out in the end.
I haven’t been required by any bank for a home inspection for a while. One or two have required pest inspections, but maybe that’s a state specific thing (?).
They have all required appraisals though which required a walkthrough if the property. I’m sure if there were walls falling down the appraiser would have identified it, but he wasn’t really looking at the systems in the house other than assuming they all work.
For a conventional cash out refinance on a rental property, a full appraisal will be required.
An inspection will not be.
A home inspector is much more nitpicky than an appraiser.
Thank you, everyone!