Cash Out Refi Question

I bought a SFH cash in Chicago 12 months ago for 18k. I rehabbed (16k) the place and got it rented after about 2 months of rehab work. It’s cranking out $760 a month in rent after I take out for taxes, insurance and property manager fee. I can provide 10 months of rent receipts now and in 1.5 months I will have the full 12 months of receipts… This has been a solid deal and I am looking to replicate my success on a new property.

My credit is poor b/c I had 2 foreclosures on some horrible deals in late 09 and early 2010. What are my options as far as pulling cash ? HML? What’s a realistic rate? Can I deed it to someone with better credit and have them do a cash out refi? Is a HELOC a less cumbersome path? The place was listed with a realtor but has been down about 60 days. Does it need to be down longer? I’m not looking to retire off of this deal but I would love to be able to pull 60-70k out. Places are appraising for 100k in the area and I had it listed for 129k, just as an fyi. Let me know. Just curious. Thx


Better than a hard money lender, take and estimate exactly what the property is worth, use comps, brokers price opinion and be prepared to pay for an appraisal.

Run an ad in a local paper, craigs list and through local investment brokers, see if you can’t find a local investor or individual with a large savings account bearing little interest and see if you can’t find a someone to loan to you in a 1st TD for a 30 year ammortized due in 5 or 10 year kind of thing and see about borrowing 60 to 70 percent of value!

I am guessing even with the poor credit you can get someone to become your 1st TD lender for 60%!
Just be honest about your situation and I think someone would do it, especially if it was recently rehabed, has a tenant providing income and is worth 100K as you stated!

I would venture in this situation you will have to provide an interest rate a couple of percent above market anyway! (Probable around 8%)

Good luck,


Thanks Gold River…Appreciate the feedback !!! I’m on it