The good news is 70% of $1.5 million is a million you’ll have left to reinvest. Glad you were able to find a good deal on MF here. Maybe arrange your financing ahead of time for a second deal and put 30% down on another identical deal. you’ll still have half a million left for reserves or a third I dentical deal if you have other reserves.
@Michael Darten You can absolutely use cash out proceeds to buy more properties. One thing to keep in mind though is that many lenders have "seasoning requirements".
This means that they will not cash out refi a property based on the appraised value until you've owned it for a certain amount of time. (usually 12 months). Often you can get a refi sooner than that but it will be based off of the lower of the appraised value or the purchase price. This becomes a short term road block for those who have added value very quickly or purchased way under market value.
Feel free to reach out anytime.
All the best,
Alex, it may also surprise you that some mortgage companies are the exact opposite. They’re trying to capture the cash buyers who want to refi. I’ve dealt with a couple companies that would only do cash out refi’s If you owned it 6 months or less after paying cash.
@Bill Brandt Please do tell. I would love to create relationships with these lenders and help broker deals for all the awesome BRRRR strategists I meet here on BP. Have any specific banks, lenders or brokers to refer?
maybe it’s a vegas thing, almost all mortgage brokers offered it. Even the local little banks and credit unions. I haven’t applied for a loan in two years so don’t have any current contacts. I’ll ask around.
Thanks @Alex Bekeza ! So I would have to sit with the bank and see if they would refi based of the appraisal value of the property to avoid the 12month ownership.
@Bill Brandt that’s very true !! A few investors i’v meet from P.A had a commercial investment property here and they went through cccu. I’m assuming commercial property loans are different but he received his refi within the 6months of Ownership as you stated . I’m seeing a trend In Vegas really leaning more toward MF
CCCU refused to do a SFR cash out refi I had owned more than 2 years and said they only did cash out refis within 6 months for non-owner occupied. They and NSB changes their rules and guidelines so often it wasn't worth mentioning before. 4 years ago CCCU gave me a pair of cash out refis but they were only fixed rate for 7 years. (I used the money to buy one bigger property. But now I have to pay them off within those 7 years to avoid massive interest rate jump.)
What if the property is out of state ?
I don’t think cccu or even NSB would help you out fo Nevada.
have you talked to bank of internet? They’ve done 2 of my refi’s. (Term and rate not cash out.) I liked that it was all online, competitive and a big discount for getting a Costco card...