Cash Out Refi on Midwest Investment Props (<50K)
Hey BP!
I recently purchased a SFR in Indy with the intention of reselling it; however, I like the pocket it's located in so I am considering making it a personal rental instead.
1. Do you know of any companies that will refi on homes worth <50k? I purchased the home for ~20k, it's value is closer to 40-45k, and it will rent for 700-725/mo.
2. Are there any companies that don't won't require seasoning since I have 100% equity? Is my equity really relevant in this?
3. Do you have any other suggestions that I should consider?
I reached out to Lima One, but it looks like the minimum they lend is 50k. In order to break through the 50k threshold, there is a second house that I am reselling that I am considering keeping instead. The numbers are similar to the property above, therefore I believe it will qualify for Lima One's portfolio loan assuming I meet any season requirements.
Thanks in advance and Happy Holidays!
-Rob
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#1 All Forums Contributor
- Real Estate Consultant
- Summerlin, NV
Lenders are out there that do less than 50k .. however if you just paid 20k your going to be hard pressed to say its worth 50k and take out more than you put in.. you need to own it for a time and probably show some improvements.. cash out refi above basis is very very risky in these low end high risk rental Niche's and lenders know it.
- Jay Hinrichs
- Podcast Guest on Show #222
