Conventional Purchase Financing Primary and Investment Purchase.

[Jerry Padilla]

 The typical waiting period for a cash out is 6 months.

You can do sooner with delayed financing if you paid cash - with the restriction of pulling out a max of the purchase price plus closing costs prior to 6 months. Delayed financing you still go according to the current appraised value of the property.

Now, Here is the Catch!

If you include on your closing statements (which vary state to state - HUD-1/ALTA statement )

With this scenerio, Here is a quick example:

Purchase price: $100k

Closing costs: $5k

Renovation Mo

 New appraisal comes in at $200k

Your all in for $105k at closing.

For a SFR at an LTV of 75% you can cash out the full amount of $150k

For a MFR at an LTV of 70% you can cash out $140k

In this scenerio, if you paid cash, you could now recoup your investment for the same amount of cash as you would have, if it would have been after 6 months since you weren't limited to the $105k if the renovation money wasn't escrowed.

Now let's say the property was valued at $300k

You will still only be able to pull out a max of $150k as that is your initial investment. So at this point you would want to wait until the 6 month mark to cash out more of your investment. The good news is, you already started the process and can cash out at 6 months and 1 day!

Here is a post with more info. on Delayed Financing;

https://www.biggerpockets.com/member-blogs/5110/46871-buy-rent-rehab-refinance-cash-out-refinance-delayed-financing