Refinance a Cash Purchase

[Cody Burckhardt]

I am closing on a property that we went all cash to speed up the closing, with the idea of refinancing  (taking out a loan) asap. I have read a few things that say 7-12 months is the seasoning period before we can do so, is this the case for multifamily rental properties as well as single family homes?

[Joe Villeneuve]

Quote from @Scott Trench:

I think that the "seasoning" period you are referring to, is related to situations where an investor puchases a property, rehabs the property to add value, and THEN refinances at a new, higher valuation. 

For example, if you were to purchase a property for $300K, put in $50K to rehab the property, and then claim that it is worth $400K, the lender might not be willing to let you refinance at the $400K valuation until a seasoning period has passed.

Lenders often require a seasoning period for refinances at new, higher valuations, after purchase. 

But, if you purchase a property for, say $300K in cash, and the appraisal supports that valuation, there's no reason I can see that a lender won't lend against a $300K valuation today. 

I'd call a couple of lenders, and I'd expect that you are able to get a cash out refi without too much trouble. 

Not quite.  An all cash purchase is considered to be 100% cash out refi.