Combining Cash Out Refi W/ HML...
Hello BP,
I'm primarily looking to buy and hold, but I don't have enough saved up (nor will I in less than 12 months) but while thinking on it today I think I may have found a solution. I'm not sure how realistic it is so I wanted to ask those who have done it.
Is it possible for me to do a fix and flip using a HML, and then get a cash out refinance? I liked the idea because it leaves me the ability to take some of the cash out of the house, while paying back the original lender. Then, I can just make payments on the single new loan, and cash flow the property. However, I've heard about 6/12 month seasoning requirements, as well as waiving those requirements if you just want to be refunded original cost of the house less rehab (not optimal for me, lacking investing capital), and I've also heard this may be avoidable if you are renting out the property. I'm hoping for some clarification here.
My fiancee and I were considering just turning around and selling our first or second flips just for the cash to pay off some medical collections and beef up our brokerage account, but ideally we are looking to create cash flow, not net worth. Thanks in advance!