Cash Out on an Investment Property

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Can you do a cash out on an investment property if it is currently listed for sale ?


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Never say never, but the chances of doing so are small.

All mortgage lenders make loans in the anticipation of a payment stream to be received for a long time. The income for a lender is earned as the payments are received and so, lenders would not want to knowingly enter into a loan that would be short lived.

A property that is currently listed for sale would be such a short lived possibility. In fact, many lenders will not accept a property as collateral (be it owner occupied or an investment property) if it was listed for sale in the last 6 months.

There could be exceptions. There is a short term loan known as a bridge loan, that is most often used with owner occupied properties. And, being an investment property, your local bank might entertain making a commercial loan. Both of these short term loans can be expensive.

Answered over 6 years ago

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