BRRRR - Stuck on financing step!!

[Ivan Cole]

My wife and I used cash to buy our first property. We have completed the rehab and have the property leased for 3 years at 1,100/month. House is worth $100,000 and we have $49,000 invested.

I have called 7 to 8 banks to discuss refinancing and pulling our capital out but no one will work with us inside the seasoning period of 6 months. However, we could go with a commercial loan program but the terms are not great. 70% LTV with 5/1 Arm @ 5.5% amortized over 20 years with an early payment penalty and ballon payment at 5 years. We could still cash flow with this deal but I just hate to go forward and shrink our cash flow with the possibility of a ballon payment after the 5 years. Is this common or is there another route to take with financing!? If we could get this refinanced we would already be onto the next property! Am I being too picky or should we go with it? Any advice would be greatly appreciated! Thanks

[Andrew Postell]

@Ivan Cole I wrote an entire post on this subject and how to structure it properly.  The first 2 sections are the problems with buying cash (which you seem to already know) so if you want to skip to the 3rd section that is the solution step.  Feel free to ask any questions if you need.  Thanks!

https://www.biggerpockets.com/forums/48/topics/460294-how-to-cash-out-1-4-unit-property

@Costin I. thanks for the mention!