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Updated over 2 years ago on . Most recent reply
Refinancing Hard Money Loan on Fix and Flip to Rent instead?
Newbie investor looking for advice. Purchased a foreclosed property with $549k and 10% down through a hard money loan for an initial fix and flip. With the current market, I'm considering changing my exit strategy and refinancing after the rehab is complete so I can live in one unit and rent out the rest of the home. ARV is about 860,000 and I'll have to pay the HML 644k to cover the remaining loan plus rehab costs that they're covering.
Will I be able to refinance so I can pay off the HML and switch to a conventional mortgage? If so, how does this work and how much should I expect to spend?
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- Lender
- Tampa/St. Petersburg/Sarasota FL and Knoxville/Sevierville/Maryville, TN
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Yes, you should be able to. You will need to be able to qualify for the conventional loan payments, and it will need to appraise. If you are just paying off the hard money loan, you should be able to do that as soon as work is done, and it will appraise and qualify for insurance. If you are hoping to pull equity out you may need to hold it for a certain number of months.