Can i refinance my fixer upper take out the additional value in cash and reinvest that money into the house?

Golden
I bought a house in DC for 350k and have completely renovated it (my wife is an architect and we did all the work). The house is now valued at $550k. My question is: Can we refinance the house at $550k, take out the extra cash and use it to refinance the house again? Or take the money to invest it in other properties? By doing this do we really have an extra $200k?

Caleb
If you borrow more than 100K you can't deduct all the interest without investing it in home improvements. You would need to qualify for the new mortgage and the house has to appraise for what you say you value it at. They won't loan 100% anyhow maybe 70%Beware of over improving your home, if you put another 200K into your home it might not be worth 750K because it is still the same location and maybe even the same size.I don't understand why you would want to refinance again if you even want to this time, refinancing cost money and your mortgage will grow. Now you have a 350K mortgage on a remodeled house owing more than 550K will increase your payments and you might find yourself unable to make them and have a nice lifestyle.

Nick
be very very careful. more careful than you have ever been.I am betting you can find houses in great shape for those pricesso that you need not borrow to fix them up!I suggest a different tack; buy, fix up, take out cash andput cash into local to you biz's that are making good money.then, use the profits of the biz to qualify for a rehab loan.why? the biz' returns 15-25%, and the RE loans cost you5-12%. Get back to me for more data, no cost

Annamarie
If you can find a bank willing to refinance your home, sure. IRS code has tightened up on using equity loans on a home. If you use it for anything other than repairs or capital improvements on the house refinanced, you won't be able to deduct the cost of escrow and loan fees on your income taxes.