refi question for investment... please help

Hello,
I bought a investment property for 88,0000, and put down money so the loan payoff is 68000. I did this in april and was going in to this project as a fix and flip, well it has sat on the market for 5 months so i am now going to hold it and rent it out. I have a 1 year lease signed and the property has been off the market now for about 2 weeks. I am looking at downing a cash out refi, is that posssible? Any other ideas? The frist loan i have is an interst only loan that is due in april 2011, so i have some time.

I am in illiois if anyone can recomend a lender

Thanks in advance for the help

At least on the surface I just dont see your ability to get to what equity that you have. The max. LTV that a conventional lender will typically go on an ivestment property cash out is 75% assuming that it is a SFR and that you have 4 financed properties or less.

If you have 5 financed properties or more, then conventional loans typically wont allow any cash out at all, so to pull cash out, you would need to do some alternative financing of some sort, ie hard money although I doubt you will get a very high LTV that way, but when your done with that, you can then roll that into a rate and term conventional refi up to 10 financed properties.

I hope this helps.

ngrant
how much do u have to pay down the loan?..I know u don’t have the 68k but what do u have…?..

I agree with Rookie. How are you going to solve that imminent problem? You better start negotiating right now with that note holder. You are not going to be able to finance your way out unless you come up with more money.

Try for a written extension. Try for a fully-amortized extension. If they don’t go for it maybe offer a higher interest rate to sweeten the deal.

If you share the terms here maybe others will have a solution to offer you.

Furnishedowner