@Jan Michael Ronquillo congrats on the purchase! The answer really depends on your goal / business model. If you’re focus is building up your buy and hold portfolio, then you may want to consider a refi under a commercial loan. I did this with my first deal and was able to pull out all of my initial investment, and then some to finance my next deal. BRRRR
Thank you for the response! Well, that is the plan, acquiring several properties. That's why I was wondering on how to proceed with this transaction. I'm also looking for no seasoning loans since I just acquired the property. So, wish me luck and hopefully I could pull this off!
@Jan Michael Ronquillo can you provide some more details on the property? How much do you think the property is worth and how much of a loan do you owe? Knowing those numbers would allow us to give some better, specific advice. Thanks!
Hello andrew! Thank you for responding! I own the house free and it's probably between 55-60k arv. I'm still on the rehab stage right now and hopefully, after reno is done, i could have it on refinance shortly. Any suggestions will really be helpful. Thank you again.
@Jan Michael Ronquillo You should be able to have a 30 year fixed rate mortgage on this property fairly easily. One option is to own it for 6 months, then refinance at 75% of the ARV on the property. Since this is a smaller loan amount the rate you should expect will be a little higher than a more "average" loan amount. Somewhere around 5.75% over a 30 year period. This will make your loan payment be at $260 per month. Not every bank loans on amounts that small so you may need to call around for options but seek a 30 year fixed rate option. Hope this helps!
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