Updated almost 10 years ago on . Most recent reply
Primary Residence Refinance Success
So being my primary residence it may not be your traditional success story but being new at this it's pretty exciting to me and all I've got so far.
3 years ago I purchased my primary residence in a fairly distressed condition. It was mostly live-able aside from some plumbing issues causing it to smell of sewer gas (bad smells always make for a great deal) and was very dated. Since purchasing it I have completely remodeled the kitchen, 1.5 baths, all flooring/fixtures, replaced the roof, repainted the exterior and added a nicely appointed rec room to the previously unfinished basement. With the exception of the roof I did all the work myself. I recently met with the bank to do a cash out refinance to invest in a rental property or two.
The numbers are as follows:
Purchase price: $130,000
Rehab costs: $25,000
Current Appraisal: $217,000
At an 80% LTV I'll be able to cash out $53,600 which will be great start for my buy and hold endeavors. Now I'm looking forward to finding that first rental property, hopefully I'm able to find something in a similar state of distress and can repeat the process.