Using equity in a rental house to purchase another property

6 Replies

Hey, I'm looking to pull around $30,000 in equity out of my rental property. I currently own 3 houses. One is my primary residence and the other two are rentals. Anybody have any suggestions as to the best strategy for moving forward? Are 4th loans difficult to get? How much of a down payment should I expect to put down for another rental?

are the rental houses in your name?   you better have them under an entity them refinance one and keep buying more

(786)-529-4075

@Carlos Zapata Yes. They are all in my name. Does it make the refinance process more difficult one way or another? Or is this just for security purposes?

Hi @Mark Akins ,

You can definitively get 4 (and up to 10) conventional loans without a problem from most banks, as long as you meet the criteria that banks requires for giving any other loan (credit score, DTI, LTV, etc.).

As for the LLC comment, I think it is only for asset protection, terms are worse when you the properties are under an LLC, so I will try to get up to 10 loans on your personal name, since the terms will be a lot better (lower interest rate, lower down payment, fixed for 30 years) than with any commercial loan.

Once you reach 10 loans, you will deal with a portfolio lender. There is no limit set on the number of properties they can finance and the terms will be the same whether you hold the properties on your name or under an LLC.

@David Fernandez Lots of good information. Thank you!

Originally posted by @Mark Akins :

Hey, I'm looking to pull around $30,000 in equity out of my rental property. I currently own 3 houses. One is my primary residence and the other two are rentals. Anybody have any suggestions as to the best strategy for moving forward? Are 4th loans difficult to get? How much of a down payment should I expect to put down for another rental?

 Try 1st Bank. They are all around the valley so you probably have a branch or two there in town. They are investor friendly.

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