any one did that? for example, I found a forclosured house, pretty cheap, but needs FIXings (like bad smell carpet etc.). when I bought it, the nominal price may be just 50% of the current market price, for example $100k, I made a traditional 30 yrs loan and paid $20k as down payment. then the fun part starts, after I purchased it, I spent another $30k on this house to put new hardwood flooring etc., so the house equity should be $50k, can I tak out the $30k and roll it into my mortgagate?
As long as you can get an appraiser to give you a good value and the underwriter to approve of it, you can cash out your equity. Good luck getting financing now if you're middle credit score is under 720. If you do plan on doing a cash out refi I hope you have the means to go full doc. Being an investor, I would consider an MTA Option ARM, as, it has a lifetime cap of 9.99%, and the 12mth treasury average index is looking pretty good right now. I'd be careful if I were you because the broker can make a sweet deal by maxing out the margin. We used to make 4pt yield spreads on the MTA...