Cash Out Refinance a cash purchase
I will be closing on a single family rental tomorrow (paying cash) that I plan on making a short term rental. I was planning on cash out refinancing the appraisal value, but even on a commercial loan I’ve been told I have to wait 12 months.
Is there a lender in Maine that will refinance to the appraised value immediately or am I stuck with deferred financing for 6-12 months?
The commercial loan is 3.75% fixed for 5 years with a 20 year amortization. After 5 years it would be 4.25 fixed for an additional 5.
A conventional mortgage would be a lower APR and fixed for 30 years of course, however we are self employed so that being on our credit report is not ideal.
What would you do?
Most Popular Reply
I would take a loan out for 80% of the appraised value at the start and use the cash to finance another project rather than buy the property with cash. Leveraging the "cheap" money from a lender.