How to extract equity from 10 homes?

Buying & Selling Real Estate
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How to extract equity from 10 homes?

Kevin Solomon
Toronto, Ontario · Member since 2014 · 10 posts · 7 votes

Hi, I'm looking to access the equity of my 10 mortgage-free SFH rentals

I know that I can set up a HELOC for each home, but that will give me 10 different HELOC accounts to manage, which would be a PITA

Are there any alternatives I should consider?

Thanks!

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Allan Rosso
Investor · . · Member since 2017 · 173 posts · 84 votes
8y
@Kevin Solomon , look for a portfolio lender that will allow you to bring all your properties together into one loan. For example, they may let you cash out 70% of the total equity in your properties, and create a single loan.
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  • Allan Rosso
    Investor · . · Member since 2017 · 173 posts · 84 votes
    8y
    @Kevin Solomon , look for a portfolio lender that will allow you to bring all your properties together into one loan. For example, they may let you cash out 70% of the total equity in your properties, and create a single loan.
    1Reply
  • Kevin Solomon
    OP
    Toronto, Ontario · Member since 2014 · 10 posts · 7 votes
    8y
    @Allan Rosso Thanks Allan I bank with Wells Fargo, would they have a portfolio lending department? Any recommendations appreciated Thanks again!
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  • Allan Rosso
    Investor · . · Member since 2017 · 173 posts · 84 votes
    8y
    @Kevin Solomon Wells Fargo most likely will not. Your best bet is probably going to be to look for smaller local banks or credit unions. Have you shopped around at all?
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  • Thomas S.
    Member since 2016 · 13k+ posts · 12k+ votes
    8y

    Find a mortgage broker. They will do all the foot work necessary on your behalf.

    In your position, with the markets as high as they are and potentially a market adjustment on the horizon, I would be selling not holding SFHs at this time. SFH properties are at high risk. Roll your money into an apartment building.

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  • Alex BekezaBusiness Member
    Lender · Los Angeles, CA · Member since 2018 · 2k+ posts · 1k+ votes
    8y

    I'm not familiar with financing properties in Canada but if your investments are in the US there are portfolio products that will lump 5 or more properties into one mortgage and do a cash out refinance at 70-75% LTV.

    [email protected]818-606-8823
    Investor Property Loan5308 Reviews
    WebsiteView Page
    1Reply
  • Dave Chow
    Investor · CA · Member since 2017 · 91 posts · 16 votes
    8y
    Originally posted by @Thomas S.:

    Find a mortgage broker. They will do all the foot work necessary on your behalf.

    In your position, with the markets as high as they are and potentially a market adjustment on the horizon, I would be selling not holding SFHs at this time. SFH properties are at high risk. Roll your money into an apartment building.

     Wonder why sfhs are at high risk ?  Compared with multiple units, sfhs are easier to rent out and manage, at least that's my experiences. They are easier to get high quality tenants. 

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  • Thomas S.
    Member since 2016 · 13k+ posts · 12k+ votes
    8y

    The risk is in losing your equity when markets adjust. The value of SFHs is driven by home buyers where as multi units value is based on rental income. The value of SFHs is at the mercy of the whim of home buyers.

    They are purchased at a much higher cost per tenant than multi units and have much higher maintenance cost per tenant. All round much higher risk.   

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