Purchase with cash then mortgage property

[Morgan Wallace]

Good Evening BiggerPockets,

I found a property that I think I can buy at a deep discount with cash. If I purchase with cash, then clean out all the junk and have it appraised, can I get a mortgage based on the appraisal, and not on the price I paid?

To be clear, I would like to mortgage the property as is, then use the difference in the loan amount and the cash paid to repair the property. I wouldn’t be repairing the property until permanent financing is in place. Basically I want to buy the equity and tap it immediately with a conventional loan.

Can I do this? If so, how?

Thanks!

[Aaron Bonne]

Hi @Morgan Wallace

Sounds like you have a nice opportunity on your hands! I agree with @Hugo Alves but would also add that some lenders might require a "seasoning period" of 6 months or so before they will refinance it. Just something to ask about as you call different lenders in your area to explore their refi options