How to extract equity from 10 homes?

7 Replies

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!

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.

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.

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. 

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.