Rockville, MD · Member since 2017 · 74 posts · 13 votes
Hello Everyone,
We found a property that might be a good flip. We don't want to do the rehab/flip right away for a couple of different reasons.
The property has a good tenant and it seems that if we buy it with a conventional 30-yr fixed rate investment loan, it'll cash flow. So the plan is to keep it as a rental for about a year or less and then rehab and sell.
However, the seller wants to close by the end of this month. I don't think we can do it that quick with a loan (We're in MD, property in WV). We have a primary home HELOC that we can use for a "cash" purchase. But it will not be cash flowing in this case. So is it possible to find a lender who would be willing to consider the initial purchase as "cash" and allow us to refi right away into a fixed rate loan, instead of waiting it to season?
Investor · Philadelphia, PA · Member since 2016 · 2k+ posts · 1k+ votes
6y
@Ilya Z. If you’re planing on just getting a refi based on your purchase price, there’s usually no seasoning period. You can buy the property for $200K and apply for a loan against that $200K valuation the day after you close. No problem (as long as the house appraised for $200K+ )
The only time you need seasoning is if you renovate it, and want to get a loan on the now $300K ARV. Most lenders will require a 6-month seasoning period for that.