I found a duplex that is on the market for $120K. I was thinking about trying to make a quick all cash purchase at a discount for about $95K (80%). I was planning on using my HELOC to purchase the duplex and close quickly, and then turnaround and refinance through a bank. Is this possible or will the bank not refinance something I just purchased?
Also, I was told I would still get hit with PMI since the bank will use the lesser of the appraised value or the purchase price when determining the 20% equity to eliminate PMI. Anyone know if I can do it this way, or am I asking for trouble with the banks?
You need a company that does not require seasoning on the appraisal!!! The key here would be to remove the risk on your primary! Is the property in satsfactory condition?
Yes seasoning is the Key here you must work with a lender that does not have seasoning and that will use the appraise value which is done on a daily basis
What would help you and what I do with my own investing before I put my HELOC at risk is have a loan in place to close right after I take aquisition that way I close just days to a week after and It works like a charm I get my cash back and I move to the next deal close it with my cash refi it so forth and on.