Refinancing your own house purchased all cash

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Refinancing your own house purchased all cash

Artem Dmitriev
Burlington , NJ · Member since 2018 · 2 posts · 0 votes

Hey everyone,
I purchased a house for 70k, rehab cost was 40k and now it worth 180k based on nearby sales for past 6 month for similar houses. 
I'm looking ways to get cash from bank on my property to buy few more houses, rehab and do it again. So far only option I found is Delayed Financing Exemption but I assume they will only give me 70k or even 70% from 70k I initially paid to purchase a house even if appraisal will come out to 180k.. 

What other options do I have? I'm looking to get at least 120k cash on this property refinanced to keep going. Please advice, I would greatly appreciated it!

Also I found a hard money loan guy who wants 13% per year with 1st year upfront plus $4200 commission, that's roughly 20k in fees..  that's too much for me.

Please advice

BIU

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Russ Draper
Investor · Boston, MA · Member since 2015 · 398 posts · 147 votes
8y

Isn't this a regular home equity line of credit kind of deal? They would pay based on the appraised value  so something like 80% of the appraised value .

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  • Russ Draper
    Investor · Boston, MA · Member since 2015 · 398 posts · 147 votes
    8y

    Isn't this a regular home equity line of credit kind of deal? They would pay based on the appraised value  so something like 80% of the appraised value .

    1Reply
  • Tarcisio Mora
    Realtor · Suisun City, CA · Member since 2017 · 58 posts · 14 votes
    8y
    If you do a cash out refinance or a HELOC you can borrow in most cases up to 80% of the appraised value minus what you owe on the property. So if the home is worth 180k, you owe 60k you can cash or borrow ~80k
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  • Melvin ListBusiness Member
    Lender · Tampa, FL · Member since 2016 · 1k+ posts · 381 votes
    8y

    @Artem Dmitriev can you wait the 6 months from purchase price so you can use a conventional loan?

    C2 Financial
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  • Heidi Wilson
    Charleston, SC · Member since 2017 · 84 posts · 46 votes
    8y
    Why can’t you do a regular mortgage? I did exactly this after buying cash and renovating my home and used the proceeds for other houses. I would not do a heloc unless you plan to pay it back in short term as interest can be variable on the heloc. Plus if I remember correctly heloc interest on personal residence isn’t tax deductible anymore but mortgage interest is.
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  • Artem Dmitriev
    OP
    Burlington , NJ · Member since 2018 · 2 posts · 0 votes
    8y

    I only own this property for less than 2 month and most banks require at least 6 month to do any type of refinancing. For HELOC some banks want you to own property for at least few years..

    I'm looking to get refinancing within a short period, a month or so from now and with minimum closing cost. APR can be high I don't mind

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  • Greg Downey
    Lender · Springfield, MO · Member since 2015 · 379 posts · 180 votes
    8y

    @Artem Dmitriev, just off-the-cuff here.... For a business that is looking to do this over and over again, I would plan on up to 75% LTV which would give you $135,000. There are guys out there that can do a refi at 3 months. I would probably expect at least a point or two to get it done though.

    1Reply
  • Michael Lee
    Flipper/Rehabber · Lyndhurst, NJ · Member since 2016 · 118 posts · 54 votes
    8y

    70% LTV for a cash out refi is pretty typical in NJ. I know some lenders require no seasoning, some 3-6 months. @Drew Walls can you give some insight?

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