Finding a lender to cash out a rental?

Question

We have a house we intended to flip finished and on the market. We have gotten a few bites on buying, but we have gotten a TON of prospective renters interested. With what we have in it, we would have a cap rate of over 25% if we rented it out.

Should we decide to cash out and rent it, what would be the best way to do that?  Definitely open to more experienced BPers advice here

Thanks in advance

Jeff Wells · Answer

Thanks Jon. The value is 40-45 and we have 22 into it. I'd LIKE to get 27ish out to save the extra. It was completely gutted and redone. Ill post this in the market place as well.

Jon Holdman · Answer

If you want to get a loan based on the price you paid plus rehab (maybe) you can do that fairly quickly.  If you want to use a new appraisal, you may have to wait six months to a year.

Rental income won't be included until you have two years landlording experience.

You'll need to post in the Marketplace if you're actually looking for a lender.

Be sure youre assessment of the income includes a realistic allowance for expenses.  Newly rehabbed doesn't mean no maintenance, for example.  Tenants will still break things.  And if you're rehabbed it for sale vs. bulletproffing it for a rental you may have more rehabbing if you sell later.