Brrrr help and advice for the new guy

[Blake M Pursel]

Alright, question time!!

So I purchased a property a few months back with a conventional loan. 20% down payment.

The tenant will be out of the property later this month and I will be ready to rehab the property.

I have spoke with the same bank that I got my initial loan from, and they are willing to fund the rehab or 80% of it at least.

It would be possible for me to fund the rehab without them, but it would be stretching me thin.

My issue is my banker told me if she were to give me the rehab loan, I would have to wait 12 months to be able to do a cash out Refi.

If all repairs are made in say 2 months and I get another renter in, can I go to a different bank or lender to get an immediate cash out Refi, then just pay the initial bank off?

I’m trying to avoid having my equity tied up in there for 12 months.

[Alex Roter]

Hey @Blake M Pursel you can find lenders that would refinance you 1 day after acquisition, however, said lenders typically have property seasoning requirements of 6-12 months to offer a new loan based on the newly appraised value (After-Repair-Value).