Accessing Equity in SFRs?

Question

I have about $1M equity tied up between 4 SFRs, and am looking to access about 30% of it to continue growing the portfolio. The only option I've found so far is to cash-out refi two of the properties. This is less than ideal since they're <4% interest. Do I have any other options? So far not finding anyone that will do a HELOC or 2nd Mortgage on investments.

Thanks

Deborah Smith · Answer

Thank you @Kerry Baird! Will check those out!

Chance Love · Answer

I'm also curious if there are other ways to pull equity in this case it'd be from my primary SF without having to do a HELOC or Cash-Out refi? The $ would be used towards a new build that I secured at the end of last year.

Alex Hunt · Answer

HELOC variable rates are very worrisome right now with the FED increase. On that same note, yes rates on cashout refinance from any of the large national investment players are above 4% including ourselves. Nothing we can do about the secondary market, and if you look at a macro scope of the rates we are still at historically low. We could do a refinance blanket but that wouldn't lower the rate versus doing them individually. You are looking to take out a low LTV but the lowest on a 5,7 or 10 year arm would be 4.25% and on 30year fixed 4.75%. Hope this helped in someway, can always message me with more questions.

Kyle Ransom · Answer

You could also consider a blanket loan to cash out.

Kerry Baird · Answer

Firstbank will do a HELOC on an investment property in Arizona up to 75% LTV as will Bank of the West (BNP Paribas) but not to a high LTV.

Mountain America CU goes to 85% LTV.

WAFD Bank can actually do a HELOC with a property held in an LLC, which is a real unicorn.