All Forum Posts by: Robert Sepulveda

You can cash out on your property that doesn't currently have a mortgage on it.Now that you'll have 5 financed properties, expect to have a 720 fico and reserves for each investment property (6 months mortgage payment). You don't have to wait if there is currently no lien on it.

@Jeff Caravalho

 yes, I would do exactly that. Ask the question if they follow delayed financing guidelines, and if you can get a new appraisal. Be prepared to go elsewhere. The appraisal question is usually a good quick indicator as to if they know how to do delayed financing. Many brokers or bankers mindset who do NOT do delayed financing will automatically say that you can't get a new appraisal until 6 months after you purchase. It's a good filter.

@Camille Pronovost yes, that's why I mentioned not everyone follows the delayed financing guidelines. Standard cash out is 6 months after your purchase for a refinance. Most banks and brokers don't read past the rest of the guidelines.

But yes, you can cash out right after your purchase as long as you hold no liens on the property you're trying to cash out on.

You wouldn't have to wait at all, since there is no lien on the property you have just bought. There is a delayed financing guideline for such a situation with many banks (not all follow this though). As long as you didn't put any type of liens on the property, you can cash out to pay the HELOC back directly (must be). It's a normal cash out refinance with the extra documentation of your closing statement (HUD), purchase contract, escrow instructions and copy of the deed.

You can get a new appraisal to accomodate the new value, but you are limited to the amount you paid for the property and what you can document you spent in repairs.

keep in mind, the 95% is when you don't take cash out. Most of the time it's reduced to 85% when you take cash out. Then you're back in the same boat paying mortgage insurance again. You're better off adding a heloc to it to lock in the savings after you refinance. Then you have the option to cash out when you see the opportunity with a heloc.

Glad to help. 

Many should be able to help you with up to 10 financed properties (including what you currently own if they're financed). At that small loan amount, it will be difficult to find a blanket loan over all of them, so they'll have to be individual loans. 

After 10 financed properties, you'll have to look into hard money, or portfolios who'll do the smaller loan amounts. 

fannie or freddie will pick that up for King county all day long with 25% down. I see pricing for 4 unit investment property at 4.5-4.6% for an 800+ fico score at that loan amount. I would definitely look around and preserve your capital.

@Carlos Enriquez

 which county are you buying in. You should be able to get a non owner occupied loan with 25% down at that level.

Your FHA option is only available to you with your primary residence. Once you buy a second home for an investment, you'll have to use a conventional loan. If you keep the owner financing on your first property, the only way to use your FHA on the next is to move into it.

If you refinance the current owner financed property into a conventional loan, your FHA benefits will still be active yes. Again as long as you're using it on your primary residence.