Multiple Rentals

Question

Hi all,

I'm seeking advice as I'm looking for 15 year terms on any/all of my rentals:

The first two have a remaining loan balance of $77k & $70k @ 5.25%

Then another three ranging: $68k, $84k & $94k @ 4%In total I have 391k outstanding on my rental properties.

I'm wondering if there are any good lenders I should be considering in an attempt to cost effectively refinance, and get my rates down.
OR if there is better ways I should be approaching this, for example; is it possible to finance 390k, pay off the properties and rather pay that ONE loan back?

For framing, I have AT LEAST 30% equity in all properties, and really good equity in some other houses I'd also be willing to put up as collateral.

Really appreciate your time in reading this, and forgive me as I'm a first time poster, so I hope I hit all the right notes..

Eric Johnson · Answer

Michael, are you refinancing all of those properties with your personal income? If so, go to a local bank or credit union that offers conventional investment products..

Tyler Bains · Answer

Do you have a relationship with a lender local to you? Specifically someone who handles lines of credit, investment/portfolio loans, etc.? If not I would start there and explore your options.

Jody Sperling · Answer

You might be able to find a business line of credit through a local bank. Especially if you have enough collateral to show you can cover such a large line. After you had the business line of credit established, you could go and pay off the outstanding real estate loans, in essence compiling them under one debt line.

With rates as they are now, you'd likely find lower interest, and as with most lines of credit, the percentage can vary from year to year. If I were faced with your scenario, I'd definitely seek that kind of business line of credit. Getting all the loans on one payment would tremendously improve your cashflow and hasten the debt pay down. Best of luck to you!

Multiple Rentals < $100k each | Refinance Advice?