Just finished a flip....PICS

Rehabbing & House Flipping

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Just finished a flip....PICS

Keith Jourdan

Property Manager · Metro Detroit, MI · Member since 2008 · 305 posts · 362 votes

Bought it for $31k, put 18k into it. Just listed it for $84k.

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Jerry PadillaBusiness Member

Lender · Rochester, NY · Member since 2014 · 3k+ posts · 1k+ votes

10y

@Keith Jourdan

You can rate and term refinance any liens on the property without seasoning. Here is some answers to a lot of questions in this thread on BRRR financing and cash out financing. It is a great way to pay for future flips!

BRRR....... Buy Rent Rehab Refinance

CASH OUT FINANCING

A cash out refinance is exactly what it sounds like. It is when you refinance your property and pull equity out of a property. The mortgage can either be paid off free and clear or can have enough equity in the property to make it worth refinancing and pulling equity out. Cash out refinances are available on primary and investment properties.

The typical cash out financing is done after 6 months of owning the property, based on ARV and available for mortgages #1-4. Please see delayed financing for less than 6 months after closing.
On a primary residence you can pull out up to 80% LTV on a SFR and up to 75% LTV on 2-4 unit multi-families.
On an investment property; A SFR if you have #1-4 mortgages you can pull out up to 75% of the equity and a 2-4 units is up to 70% equity.
On an investment property; If you have #5-10 mortgages you can only pull out money in the first 6 months (delayed financing) that you own the property, if you didn't originally get a mortgage on the property. As long as the value is there (on a SFR 70% LTV and 2-4 units 65% LTV) You can take out up to the purchase price plus closing costs on the property.
RATE and TERM REFINANCE - PROPERTY 5-10 If you are willing to pay the fees and go through two closings.... You can take out private or hard money on free and clear properties #5-10 and do a rate and term refinance with conventional to pull money out on them.

PROPERTIES LISTED FOR SALE
For a rate and term refinance transaction, the borrower must evidence that the listing has been cancelled, and must not have been listed for sale as of the date of the application.
For a cash-out transaction, the borrower must provide evidence that the listing was cancelled at least six months prior to the date of application.
Cash Reserves Required For Other Properties Owned by Investor;
- If the borrower has 1-4 mortgages, an additional two (2) months for every other SFR investment property and second home is required and additional six (6) months for every other 2-4 unit investment property and second home
- If the borrower has 5-10 mortgages, An additional six (6) months for every other investment property and second home.

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Danielle Green
Ypsilanti, MI · Member since 2016 · 13 posts · 2 votes
10y
Nice! Thanks so much for sharing I am totally inspired.
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Keith Jourdan
OP
Property Manager · Metro Detroit, MI · Member since 2008 · 305 posts · 362 votes
10y
Accepted an offer of $78k today with no concessions. Conventional loan, dont have to worry about the dreaded FHA flip rules.
If it closes, should have a net profit of $25k+
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David Behrendt
Handyman · Belleville, MI · Member since 2016 · 13 posts · 6 votes
10y
congratulations! Glad to hear it sold.
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Scott Schultz
Rental Property Investor · West Bend, WI · Member since 2015 · 931 posts · 598 votes
10y
Originally posted by @Keith Jourdan:

Originally posted by @Bill Hinshaw:
Sure seems like a good opportunity for BRRR. You could potentially pull more cash out than you put in and still cash flow as a rental. Not likely, but it seems like you might be close.
Isn't there a 1 year seasoning period before you can pull out equity?
No seasoning requirement on the Commercial side, although some banks have internal guidelines. Im closing a LOC next week on a property i purchased at sheriff sale 2 weeks prior, with cash for $32,206 got a BPO back of $80K and they are giving me a $64K line (80% of BPO), he wanted me to term it and give me all the cash, but i dont want to pay interest if im not using the money.
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Scott Schultz
Rental Property Investor · West Bend, WI · Member since 2015 · 931 posts · 598 votes
10y
Originally posted by @Keith Jourdan:

Accepted an offer of $78k today with no concessions. Conventional loan, dont have to worry about the dreaded FHA flip rules.
If it closes, should have a net profit of $25k+
When you say conventional, do you mean Freddie/Fanny? will the Buyer have PMI, just a word of caution, some of the PMI companies, and some "big banks" have issues with "title seasoning" anything less than 12 mo can kill a deal, i have run into this 4-5 times now over the past 15 flips. and most loan officers are clueless about this, so you find out a week from closing that they cant lend. just questions worth asking up front.
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