Trying to refinance and consolidate mortgages.

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Trying to refinance and consolidate mortgages.

Matthew HutchinsonPro Member
Frisco, TX · Member since 2017 · 33 posts · 28 votes

Hi All,

Just trying to figure out what my options are with refinancing 4 properties and consolidating into a single payment.  Are there options for this?  Is this even a thing?  I am looking to take out some equity for upgrades and investing but wasn't sure if I could do it this way.

Any suggestions would be appreciated.

Thanks

Matt

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Jay HurstBusiness Member
Lender · Dallas, TX · Member since 2017 · 1k+ posts · 1k+ votes
6mo
Quote from @Matthew Hutchinson:

Hi All,

Just trying to figure out what my options are with refinancing 4 properties and consolidating into a single payment.  Are there options for this?  Is this even a thing?  I am looking to take out some equity for upgrades and investing but wasn't sure if I could do it this way.

Any suggestions would be appreciated.

Thanks

Matt

 The first question is always why?  What are you looking to accomplish by putting all four properties togther?   if it simply to get equity there are much better ways of doing it then a likely more expensive and why less flexible financing then you have now that you would giving up for a one payment blanket loan.

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  • Pierre Guirguis
    Lender · Marlboro, NJ · Member since 2025 · 243 posts · 150 votes
    6mo

    This is absolutely doable, but it’s one of those situations where the structure makes or breaks it.

    You can consolidate the four into one loan, that’s called a portfolio or blanket loan. It gives you one payment and can work well if the properties are all performing and the income supports it. The catch is everything gets tied together, so you lose some flexibility and the numbers have to work across the whole group, not just the strong ones.

    Where I’d take a harder look is what you’re actually trying to accomplish with the refi. If the goal is to pull equity and reinvest or upgrade units, sometimes a straight consolidation isn’t the best first move. A lot of the time we’ll structure something short term to pull the capital out, let you execute the upgrades or repositioning, then refinance everything into a clean long term loan once the rents and values are where they should be.

    That’s usually how you maximize leverage instead of getting capped by today’s numbers.

    If you want to run it properly, it really just comes down to a few things like current rents, loan balances, and rough values. Happy to take a look and tell you pretty quickly which direction actually gets you the most out without boxing you in.

    1Reply
    • Matthew HutchinsonPro Member
      OP
      Frisco, TX · Member since 2017 · 33 posts · 28 votes
      6mo
      Quote from @Pierre Guirguis:

      This is absolutely doable, but it’s one of those situations where the structure makes or breaks it.

      You can consolidate the four into one loan, that’s called a portfolio or blanket loan. It gives you one payment and can work well if the properties are all performing and the income supports it. The catch is everything gets tied together, so you lose some flexibility and the numbers have to work across the whole group, not just the strong ones.

      Where I’d take a harder look is what you’re actually trying to accomplish with the refi. If the goal is to pull equity and reinvest or upgrade units, sometimes a straight consolidation isn’t the best first move. A lot of the time we’ll structure something short term to pull the capital out, let you execute the upgrades or repositioning, then refinance everything into a clean long term loan once the rents and values are where they should be.

      That’s usually how you maximize leverage instead of getting capped by today’s numbers.

      If you want to run it properly, it really just comes down to a few things like current rents, loan balances, and rough values. Happy to take a look and tell you pretty quickly which direction actually gets you the most out without boxing you in.


       Thanks for those responses.  Giving me a lot to think about for sure.  I am really looking to do some upgrades and rehabs and then rent them or keep them rented.

      0Reply
  • Jay HurstBusiness Member
    Lender · Dallas, TX · Member since 2017 · 1k+ posts · 1k+ votes
    6mo
    Quote from @Matthew Hutchinson:

    Hi All,

    Just trying to figure out what my options are with refinancing 4 properties and consolidating into a single payment.  Are there options for this?  Is this even a thing?  I am looking to take out some equity for upgrades and investing but wasn't sure if I could do it this way.

    Any suggestions would be appreciated.

    Thanks

    Matt

     The first question is always why?  What are you looking to accomplish by putting all four properties togther?   if it simply to get equity there are much better ways of doing it then a likely more expensive and why less flexible financing then you have now that you would giving up for a one payment blanket loan.

    Hurst Real Estate, INC4.991 Reviews
    WebsiteView Page
    2Reply
  • Erik EstradaBusiness Member
    Lender · Member since 2022 · 6k+ posts · 1k+ votes
    6mo
    Quote from @Matthew Hutchinson:

    Hi All,

    Just trying to figure out what my options are with refinancing 4 properties and consolidating into a single payment.  Are there options for this?  Is this even a thing?  I am looking to take out some equity for upgrades and investing but wasn't sure if I could do it this way.

    Any suggestions would be appreciated.

    Thanks

    Matt


     Hey Matt, 

    You should be able to achieve this on a portfolio loan. Now it's just a matter if a refinance makes sense based on your current situation. What is your 1st mtg rate on all 4 properties? How much do you owe, and how much are you planning to cash out? 

    [email protected]818-269-7983
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  • Matthew HutchinsonPro Member
    OP
    Frisco, TX · Member since 2017 · 33 posts · 28 votes
    6mo

    Also, I have 3 properties with mortgages and 1 free and clear as a BRRRR.

    0Reply
    • Jay HurstBusiness Member
      Lender · Dallas, TX · Member since 2017 · 1k+ posts · 1k+ votes
      6mo
      Quote from @Matthew Hutchinson:

      Also, I have 3 properties with mortgages and 1 free and clear as a BRRRR.


      First option would likely be to simply do a fixed cash out on free and clear property. or, if you want a revolving line that you can pay back use again a HELOC will have a higher rate but allow you freedom to borrow again when needed.

      A blanket loan would not be your best option based on the info you have provided. 

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  • AJ ExnerPro Member
    Lender · Springfield, MO · Member since 2023 · 654 posts · 315 votes
    6mo

    Hey Matt,

    Once you dive into it, you'll want to confirm with whatever lender you go towards what their requirements are for portfolios. If that is the direction you go, every lender is going to vary by how many properties (minimum and maximum) that they want in a portfolio, what their leverage is that they are comfortable with, minimum property values, DSCR requirements (if you choose to go that way), plus paying for 4 appraisals and coordinating all of that.

    You will also want to make sure that you've owned those properties for long enough, because the seasoning requirement on a portfolio might differ from program to program.

    Plus, the rates will often differ a bit as well from single-asset 'multi-pack' (multiple loans done simultaneously) vs. a true portfolio.

    Hope that helps a little bit, tl;dr, vet the program as much as you can beforehand because portfolios are finnicky and you don't want to end up with 4 appraisals in hand and a denial because of something that could have been vetted on the front end

    Good luck, some great options out here!

    [email protected]417-427-2612
    0Reply
  • Ken M.
    Investor · Get yourself trained before doing something inadvisable. · Member since 2024 · 3k+ posts · 1k+ votes
    6mo
    Quote from @Matthew Hutchinson:

    Hi All,

    Just trying to figure out what my options are with refinancing 4 properties and consolidating into a single payment.  Are there options for this?  Is this even a thing?  I am looking to take out some equity for upgrades and investing but wasn't sure if I could do it this way.

    Any suggestions would be appreciated.

    Thanks

    Matt

    Why would you risk a paid off property into a loan where if you missed a payment ALL FOUR properties could go into foreclosure? It's like having 4 kids and sending all four into the mine field to see who gets blown up. Save your favorite kid and only send 3.
    1Reply
  • Mike GrudzienPro Member
    Lender · Eugene, OR · Member since 2019 · 2k+ posts · 1k+ votes
    6mo

    Definitely explore the pros and CONS of portfolio loans and how they match your GOALS...

    0Reply
  • Edward Dandrea
    Rental Property Investor · NY · Member since 2018 · 61 posts · 35 votes
    6mo

    @Mike Grudzien

    How do portfolio loans work?

    0Reply
    • Ken M.
      Investor · Get yourself trained before doing something inadvisable. · Member since 2024 · 3k+ posts · 1k+ votes
      6mo
      Quote from @Edward Dandrea:

      @Mike Grudzien

      How do portfolio loans work?

      It puts you entire portfolio at risk in the event of default. Not for the weak of stomach.
      0Reply
  • Mike GrudzienPro Member
    Lender · Eugene, OR · Member since 2019 · 2k+ posts · 1k+ votes
    6mo

    That's a huge topic, not just a BP reply.  You need to do serious research.

    0Reply
  • Jules Aton
    MD/DC · Member since 2024 · 1k+ posts · 1k+ votes
    6mo

    I’m not sure why you would want to do this so I might be missing something but no. Heck no. 
    I have no interest in trying all my properties under one loan and risk losing everything. 

    0Reply
  • Matthew Bernal
    Investor · Austin, TX · Member since 2021 · 497 posts · 127 votes
    6mo

    Matt, yes this is absolutely a thing . It's called a portfolio or blanket loan and it's designed exactly for what you're describing.

    You can refinance all 4 properties under one loan, one payment, and pull cash out across the portfolio at the same time. Most DSCR portfolio lenders will look at the combined rental income across all properties to qualify rather than your personal income.

    One thing worth knowing before you go this route: blanket loans cross-collateralize your properties which means if you ever want to sell one individually it can get complicated. Some investors prefer individual DSCR cash-out refis on each property instead — more closing costs upfront but each asset stays independent and flexible.

    I work with investors on both structures and happy to run the numbers on your portfolio to show you which approach makes more sense for your goals.

    What are the approximate values and current loan balances across the 4 properties?

    1Reply
  • Steven LeeBusiness Member
    Lender · 18021 Norwalk Blvd Suite 209. Artesia, CA 90701 · Member since 2015 · 487 posts · 42 votes
    6mo

    Matt,

    Refinancing 4 properties into a portfolio loan is not in your best interest. If you decide to sell any of your properties. You will have to refinance the loan again. If you're looking for funds to renovate you property. It's easier to apply for a 0% credit card and do balance transfers to avoid any cost. You can consider refinancing your property if there is a huge difference in value. LTV is a factor when you're considering doing a cash out refinance. Everyone may have a different opinion.

    [email protected]800-369-7009
    RCD Capital4.826 Reviews
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    1Reply
  • Matthew HutchinsonPro Member
    OP
    Frisco, TX · Member since 2017 · 33 posts · 28 votes
    6mo

    Thanks to everyone who replied - I really appreciate it.  I do see the error in my thinking about putting all of them in one bucket and the problem it can cause later down the line.

    Matt

    4Reply
  • Doug SmithPro Member
    Lender · Tampa, FL · Member since 2013 · 2k+ posts · 2k+ votes
    6mo

    It's called a "blanket" loan where you do one loan on multiple pieces of collateral. Yes, you can do it, but I've always shied away from it because the borrower might need to divest themselves of one of the pieces of collateral. In that case, there would need to be a "partial release clause" involved. You'll usually have language in the clause that states that you have to pay more than that property's share of the loan balance to get the release (usually 125%). It's been my experience that lenders say it's not an issue to release a property, but when it comes time to do it they usually make it harder to do. I've done them, but the situation has to make sense. Let me know if you have any questions. 

    0Reply
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