Cash Out and Refinance Lenders?

[Sam Booth]

I have 2 rental properties in alabama and I am thinking about doing a cash out refinance with the point being to cash out the equity to purchase a new investment property. 

Any tips for this? 

Alabama lenders who so this?

What sort of rates should I expect? (Currently in the 4% on both properties).

Thanks!

[Robin Simon]

Hi Sam

Speaking on DSCR loans, you can buy down points for interest, but your interest floor is probably going to be around 6% and maybe a bit higher, which might be a tough sell if you are currently in the 4s. That being said, you should always run the numbers and they might surprise you, considering the big increases in rents. You should model two scenarios: A) Status quo, how much you will make if you just keep the 2 properties with your current loans, add up the A+B properties cash flows and B) Cash-out refinance and buy a new one, add up the monthly cash flows for A+B+C