Buying rental and Refinancing

1 Reply

Greetings all, I wanted to gain insight on the following scenario. If I'm purchasing a single family that's currently with a 1-year lease (tenant paying 745/mth) and the sales price is 20k ( but at closing, I'm buying for 25k after CC and other fees). Being that I now have 100% equity in the property,

1) would I be able to pull out that equity to repay my lender (if so, what % of that equity can I tap into)

2) would I be able to force the equity with some repairs to the property so that when a refinance company appraise the property, they'd see that value was added and I'd be able to get a better chunk of that equity

All insight are greatly appreciated 

Originally posted by @Marc Cesar :

Greetings all, I wanted to gain insight on the following scenario. If I'm purchasing a single family that's currently with a 1-year lease (tenant paying 745/mth) and the sales price is 20k ( but at closing, I'm buying for 25k after CC and other fees). Being that I now have 100% equity in the property,

1) would I be able to pull out that equity to repay my lender (if so, what % of that equity can I tap into)

2) would I be able to force the equity with some repairs to the property so that when a refinance company appraise the property, they'd see that value was added and I'd be able to get a better chunk of that equity

All insight are greatly appreciated 

1. Yes you can cash out refinance 70-80% LTV depending on the lender.

2. Yes if the property needs rehab you can force appreciation and then cash out based on the new appraised value.

Create Lasting Wealth Through Real Estate

Join the millions of people achieving financial freedom through the power of real estate investing

Start here