Cash out refinance | Investment Property

Cash out refinance | Investment Property

Pennsauken, NJ · Member since 2017 · 32 posts · 3 votes

Hey everybody, 

So I just purchased and renovated my first rental property in cash. I am currently looking for a lender that will accept a cash out refi on an investment property, but my criteria is a little specific. I don't have any proof of income, I have "good" credit (almost a 680) and the mortgage would be for a small amount. Based on the last sold comps, the house is worth about $60,000-$65,000. I have found a few but for the most part the minimum loan amount is $100k. Obviously, this house will not appraise for anywhere close to that amount.

Does anyone know of any lenders that I can call to get this mortgage done? Thanks! 

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Rental Property Investor · Member since 2018 · 207 posts · 225 votes
7y
I don't know any specific lenders, but if you get tenants in and leases in place, it will help you.  I hope that helps, and good luck!
- JM
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  • Rental Property Investor · Member since 2018 · 207 posts · 225 votes
    7y
    I don't know any specific lenders, but if you get tenants in and leases in place, it will help you.  I hope that helps, and good luck!
    - JM
  • Lender · Long Beach, CA · Member since 2013 · 496 posts · 296 votes
    7y

    I do have a lender that can go down to a loan amount of 25k, but not for single family. I have a couple that will go down to 50k, but that won't help you, sorry. I work with over 50 lenders now, I think you might need to find private money, or maybe think about selling it.

    Please, all of you BRRRR people out there, talk to a lender before you pull the trigger, so you can see if you qualify for a refinance, and what it's going to look like. If you can't do conventional bank financing (need good income and credit score and reserves), then you will have to go commercial and your interest rate will be higher, and more closing costs. I always run the numbers for my clients so they can see what their cash flow will look like when refinanced.

  • Rental Property Investor · West New York, NJ · Member since 2015 · 27 posts · 7 votes
    6y


    @Jesse Rivera you make an excellent point that I think is over looked by inexperienced investors far too often.

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