“Refinancing Investment Properties”
So
based on our conversation, I'll need to keep it for 6mo. If it
appraises for 150K, then is the maximum mortgage I can take out 105K
(70%) or is the maximum cash I can take out 105K? I just want to make
sure I'm clear on my numbers. I wanted to take out a mortgage for around
135K, but I don't know if I can just pick and choose the value I want,
as long as it's under the appraised amount?
Thanks!
Amanda
Unfortunately,
many are a bit unrealistic when it comes to refinancing investment
properties. In Amanda’s situation if her property will in fact be worth
$150,000 after renovations and 6 months of ownership, the loan amount
would be $105,000, not the $135,000 that she wants.
I
explained to her that the property would have to appraise over
$190,000. She told me that her research showed that value would be
closer to $150,000, but she is willing to have the property appraised to
make sure.
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