I own a home free and clear that should appraise for around 30k, however no lenders i have tried will refinance a property at such a low price. Any advice?
Sorry to hear that @Brandon P. . I am going through a similar issue on a few properties. In my case, the properties should appraise above the bank's price threshold, but because I purchased them too recently, they are only allowed to go off the purchase price. Is there a chance that your property could appraise higher in the next few years with market appreciation and/or improvements?
There is a solution:
1 - You have to get a HELOC on all of them first.
2 - Take cash from the HELOCS, combine them together, and buy another property where the refi loan would be higher than the minimum 50k.
3 - Take part of the "cash out" from the refi and pay down your HELOCS.
4 - Take the cash out from the refi to buy your next property.
5 - Repeat steps above until you:
a - Pay off HELOCS in pieces
b - Get tired of using the same "cash" (from the continued refis) to buy cash flow
Keep in mind that your choices of properties must allow all of them to continue to have positive CF...or choose a different property.
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