Seeking Cash Out Refinance
I have a duplex that I own free and clear and would like to do a cash out refinance. I purchased a distressed property earlier in the year and rehabbed the property. Prior to completing the rehab I got an appraisal done that said the property would be worth 55k upon completion as well as recent comps selling for around 65k plus. Rehab has been completed for the property, I have one of the units leased for $750 per month and the other unit is currently listed for $650 per month.The Property is located in , NY. The yearly taxes are $2,188 and the insurance is $912 a year. I am seeking 75% LTV for the cash out refinance. Thanks for your consideration.
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Beautiful rehab by the way!
Many lenders will do a cash out refi on your duplex at 75% LTV. My concern would be the cost of the money. If your property appraises at 65k, at best, you will get $48,750. Your closing costs are going to be somewhere between $3,700 and $5,500 just to access that money. At 5k closing costs that's about a 10% cost for that money plus the interest rate on the fixed rate loan that will be close to if not more than 5%.
I've looked into this myself recently for my property in New York State trying to access some cash. My choice is to go with a HELOC ... very low closing costs and you will get access to the same money but you only pay interest on it if you use it. I know it's very hard to find a HELOC on an investment property but I've been told that TD Bank will do it. I can PM you the contact info for the person I'm working with if you're interested.