I have read that many investors will do a refi after they finish the rehab to pull cash back out. They do pay closing costs on this refi, correct? Paying 2 sets of closing costs within a few months would seem to eat away at the profits. Or do they just consider the closing costs to be insignificant compared to their profit? I’m sure there is something I am missing, so I would appreciate any insight into this.
Thanks.
You have to pay to play.
If that is what you are planning on doing, then you figure in the refi closing costs when you are checking the numbers to see if it fits into your criteria.
Raj
Yes, it is true that you have to pay closing costs each time that you complete a mortgage transaction. However, if you are dealing with the same broker each time and the same title comapny, then you should be able to get some discounts.
I.E Recertification on Title Insurance, discounted broker fee, etc.