Looking for a lender that offers cash-out refi on Investment Properties

Rental Property Investor · Thousand Oaks, CA · Member since 2017 · 42 posts · 10 votes

Hello, I own a duplex in Lubbock, TX with a good amount of equity. I am looking for a lender that will either do a HELOC or refi so I can pull some cash out for two other properties I need to do some work on. I would love some referrals to bankers that can make decisions on this type of loan. Thanks in advance!

0 Reply

58 views

11 Replies

Jump to latestLatest

Sort by

Zach Edelman
Lender · New York, NY · Member since 2022 · 1k+ posts · 1k+ votes
2y
Hello Josh -
Depending on how much equity you want to pull out, and what your current first position lien looks like (i.e what rate), will determine whether a HELOC or a refinance is worth it. I know for cash-out refinances right now, for DSCR, rates are anywhere from high 6's to high 8's, with where you fall in the range being based on FICO score, LTV, DSCR, and prepayment penalty.
0 Reply
Erik EstradaBusiness Member
Lender · Los Angeles, CA · Member since 2022 · 7k+ posts · 1k+ votes
2y
Quote from @Josh Beller:

Hello, I own a duplex in Lubbock, TX with a good amount of equity. I am looking for a lender that will either do a HELOC or refi so I can pull some cash out for two other properties I need to do some work on. I would love some referrals to bankers that can make decisions on this type of loan. Thanks in advance!

Hey Josh,

Are the properties habitable? IF not, many DSCR lenders and HELOC lenders will not be able to refinance you. However if you are planning to make upgrades, we need to make sure the property debt services based on the AS IS market rent, to do a cash out.

You may also do a HELOC, however many lenders will cap you at 70% CLTV. It is also a full doc loan.
[email protected]818-269-7983
LuxePrivate Investments LLC 571 Reviews
Website View Page
0 Reply
Devin PetersonBusiness Member
Lender · Sarasota, FL · Member since 2022 · 2k+ posts · 696 votes
2y
Quote from @Josh Beller:

Hello, I own a duplex in Lubbock, TX with a good amount of equity. I am looking for a lender that will either do a HELOC or refi so I can pull some cash out for two other properties I need to do some work on. I would love some referrals to bankers that can make decisions on this type of loan. Thanks in advance!
Hi Josh,

The product you are most likely seeking here is a DSCR cash out refinance. You can pull up to 75% LTV of the property to use for your next business purpose investment/loan. HELOCs are available for investment properties, but they are traditional quasi, governmental underwrites; e.g., DTI is a factor and generally presents a problem for most investors. Happy to connect more to answer any questions!

[email protected]860-538-3672
ProAlpha Capital55 Reviews
Website View Page
0 Reply
Ethan Gidcumb
Lender · San Diego, CA · Member since 2022 · 130 posts · 75 votes
2y
Hey Josh, if your property is cash-flowing, I can possibly help you with this. I'll send you a private message with more information to see if we're a good fit for each other's business.
0 Reply
Jay HurstBusiness Member
Lender · Dallas, TX · Member since 2017 · 1k+ posts · 1k+ votes
2y
Quote from @Josh Beller:

Hello, I own a duplex in Lubbock, TX with a good amount of equity. I am looking for a lender that will either do a HELOC or refi so I can pull some cash out for two other properties I need to do some work on. I would love some referrals to bankers that can make decisions on this type of loan. Thanks in advance!

@Josh Beller We make these loans in Texas. Love to chat.
Hurst Real Estate, INC4.986 Reviews
Website View Page
0 Reply
Derek BrickleyBusiness Member
Lender · Ann Arbor, MI · Member since 2021 · 705 posts · 239 votes
2y
Hey Josh! Not sure what would make most sense, but would be happy to see if we could help. Weighing the options, it would depend how much equity you would be looking to pull out and your current debt-service. Definitely are circumstances where one makes more sense over the other, but hard to say from the post.
[email protected]734-645-7722
Gold Star Mortgage Financial Group548 Reviews
Website View Page
0 Reply
Kelli Wilson
Lender · Indianapolis IN · Member since 2024 · 31 posts · 7 votes
2y
Quote from @Josh Beller:

Hello, I own a duplex in Lubbock, TX with a good amount of equity. I am looking for a lender that will either do a HELOC or refi so I can pull some cash out for two other properties I need to do some work on. I would love some referrals to bankers that can make decisions on this type of loan. Thanks in advance!

Hi Josh, sounds like a 1st lien HELOC might be a good option for you.
0 Reply
Jayson Cain
Lender · Manhattan Beach, CA · Member since 2017 · 423 posts · 268 votes
2y
Hi @Josh Beller,
I'm based in Southern California, but I have started my out-of-state real estate journey in Indianapolis. Now, I have a portfolio of Short Term Rentals and Long Term Rentals.

I've also helped other investors with their DSCR loans and flip projects. Happy to share my experiences and chat with you more if you're interested.
0 Reply
Brett Thomas
Member since 2022 · 18 posts · 4 votes
2y
Josh - Plenty of options out there. Are you looking for conventional or DSCR? Conventional will mean you have qualifying income to support the loan (W2 or Self Employed?). DSCR is the easy way to go but come with higher rates.
0 Reply
Jacob Sherman
12 Penns Trail Suite 138 Newtown, PA 18940 · Member since 2023 · 1k+ posts · 319 votes
2y
Hey Josh ! Rates are coming down so it not as painful to refinance and lose the pandemic rates . HELOS's are pretty rare but there are certainly credit unions and banks coming back into the market with the product . Maybe can explore financing directly on the 2 properties that are requiring work . Personal loans and lines of credit are also a great tool to use depending on the amounts .
0 Reply

Join the conversationCreate a free account to reply, vote on answers and follow this thread.