Cashing out on equity
Ok guys, I have a big question. I hope I have this in the correct topic area, if not feel free to move it to the proper place.
I searched the forum and didn't find anything specific to my question so here goes....
I have some money to invest, and want to get in the game of buying and holding/renting. I also have some other stuff going on and can't have my liquid assets tied up for very long as I will be using it for other business ventures.
I found a property where the asking price is below market value, but it does need some cosmetic work, nothing structural or important. Could be rented out right now, but I would like to do some updates to it. Asking price is about $10-15k below market value before these updates, depends on the deal I can get by purchasing with cash.
If I purchase this house with cash, how long would it be before I could basically take out a loan against the house? I think this is called a cash out finance? Also, will the bank give me 80% of the appraisal value? Meaning if the house is worth 100k, I purchase it for 50k. Could I then turn around and do a cash out for 80k, and basically make 30 grand in liquid?
Just wondering if I am understanding this correctly. If this is the case, then I just opened pandora's box, and am wishing I would have done this much sooner.
BTW, I am talking about SFH's.
Thanks for any and all replies/help. If I need to give more details on something then please let me know.