Looking to Cash-Out Refi

2 Replies

Hello Everyone,

I am looking to do a cash-out refi on my SFH rental in the next month or two. Could anyone provide feedback on your experience in doing this in the DMV area?

Hi @James Nelson ,

Do you own the rental in your name or in some sort of entity?  Most lenders main concern will be the as is value in relation to how much money you need.  On the hard money side at least, typical for this area is 65%-75% for cash out and 70%-80% non cash out.  They will likely also want copies or leases, info on tenants and an assignment of rents as protection.  What you are doing with the money and your exit strategy will also be taken into consideration.  

Hope this helps.

Originally posted by @Andrew Michael :

Hi @James Nelson,

Do you own the rental in your name or in some sort of entity?  Most lenders main concern will be the as is value in relation to how much money you need.  On the hard money side at least, typical for this area is 65%-75% for cash out and 70%-80% non cash out.  They will likely also want copies or leases, info on tenants and an assignment of rents as protection.  What you are doing with the money and your exit strategy will also be taken into consideration.  

Hope this helps.

 Thanks for the reply. The rental is in the name of my wife and I. With the cash-out, I plan to give my mom back her portion she invested with interest and use the rest on the next rental purchase. When purchased, the appraisal came back at $225k and I now owe $159k. It has been seasoned for 3 months.